What Happened?
Shares of regional banking company Wintrust Financial (NASDAQ: WTFC) jumped 3.2% in the afternoon session after the company reported record second-quarter earnings that surpassed Wall Street expectations.
The company announced a record quarterly net income of $195.5 million, or $2.78 per diluted share, beating the consensus analyst estimate of $2.59 per share. Revenue for the quarter also came in ahead of forecasts at $670.8 million. The strong performance was driven by significant growth in the bank's core business lines. Total loans increased by $2.3 billion and total deposits grew by $2.2 billion during the quarter. In a positive sign for profitability, Wintrust maintained a stable net interest margin—the difference between what it earns on loans and pays on deposits—of 3.54%.
CEO Timothy Crane attributed the record results to this combination of "balance sheet growth and a stable net interest margin." Following the report, analysts at DA Davidson reiterated their "Buy" rating on the stock, highlighting the strong loan growth and earnings beat.
After the initial pop the shares cooled down to $135.17, up 2.9% from previous close.
Is now the time to buy Wintrust Financial? Access our full analysis report here, it’s free.
What Is The Market Telling Us
Wintrust Financial’s shares are not very volatile and have only had 5 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
Wintrust Financial is up 9% since the beginning of the year, and at $135.17 per share, it is trading close to its 52-week high of $138.50 from November 2024. Investors who bought $1,000 worth of Wintrust Financial’s shares 5 years ago would now be looking at an investment worth $3,091.
Do you want to know what moves the business you care about? Add them to your StockStory watchlist and every time a stock significantly moves, we provide you with a timely explanation straight to your inbox. It’s free and will only take you a second.
