Earnings Preview: Webster Financial Corporation

| About: Webster Financial (WBS)
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Company Profile
Webster Financial Corporation operates as the holding company of Webster Bank, National Association that provides financial services to individuals, families, and businesses primarily in southern New England and Westchester County, New York. Webster Financial Corporation (NYSE:WBS) is scheduled to report its second quarter earnings results on July 13, 2012, before market open.

Technical Overview
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Webster Financial has a market cap of $1.91 billion and it is currently trading around $21.73 with a 52 week range of $14.34 to $23.94. The stock has risen 7.06% year to date. The following table provides the key financial ratios for Webster Financial:

Key Ratio Value
PEG 1.76
P/E 13.14
Forward P/E 12.06
Profit Margin 20.93%
Return On Assets (ROA) 0.84%
Return On Equity (ROE) 8.35%

Recent News

  • On July 5, 2012, Webster Bank announced that Bob Polito, senior vice president, director of government guaranteed lending, has been named a Community Bank Hero by The Commercial Record.
  • On June 27, 2012, Webster Bank announced that Patricia Placencia, of Cranston, has been named to the 2012 Providence Business News "40 Under Forty."
  • On June 18, 2012, Webster Financial Corporation, the parent of Webster Bank, announced that it will redeem in whole at par all of the outstanding Webster Capital Trust IV 7.65% Fixed to Floating Rate Trust Preferred Securities issued June 20, 2007, due June 20, 2037, CUSIP 94769YAA7 (the "Securities"), which will be redeemed July 18, 2012.
  • On May 8, 2012, Webster Bank announced the hiring of Philip C. Picillo as senior vice president, Treasury Services.
  • On May 7, 2012, Elan Financial Services (Elan) and Webster Bank have partnered to offer consumers and businesses a robust suite of Webster Bank Visa credit cards that will include reward options such as a full one percent cash back, merchandise, gift certificates or travel rewards.
  • On April 27, 2012, Webster Bank announced the promotion of Mark Dowling to senior vice president, senior credit executive.
  • On April 27, 2012, Webster Bank announced Danielle Altieri as the new vice president, branch manager in Southbury, Conn.
  • On April 23, 2012, Webster Financial Corporation announced that its Board of Directors had declared a quarterly cash dividend of $.10 on its common stock, an increase from the previous $.05 per share.

Analyst Guidance and Earnings History
The second quarter revenues are expected to be $145.17 million when compared to $140.12 million for the same quarter last year. Earnings per share for the second quarter are expected to be 44 cents a share, up from 36 cents a share in the year-ago period.

The average price target from analyst for Webster Financial is $23.71 with average rating is OVERWEIGHT
Out of the last 4 quarters, Webster Financial has met or exceeded the EPS estimates all the 4 times. The following chart shows the Analyst estimates history and the actual EPS results:

The following chart shows the annual summary of Sales and Net income for Webster Financial:


M&T Bank Corporation (NYSE:MTB), Century Bancorp Inc CNBKA), Enterprise Bancorp Inc (NASDAQ:EBTC) and Washington Trust Bancorp (NASDAQ:WASH) are considered as major competitors for Webster Financial and the table below provides the key metrics for these companies:

Sources: Some of the data is taken from Google Finance, Yahoo Finance, Nasdaq, Finviz and investor sites.

Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in WBS over the next 72 hours.

Additional Disclosure: I change my positions very frequently and may initiate either long or short positions in the above mentioned stocks at any time.

Disclaimer: I am not a registered investment advisor and do not provide specific investment advice. The information contained herein is for informational purposes only. Nothing in this article should be taken as a solicitation to purchase or sell securities. Before buying or selling any stock you should do your own research and reach your own conclusion. It is up to investors to make the correct decision after necessary research.