Valley National Bancorp (VLY) Q3 2024 Earnings Call Transcript
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Oct 24 2024
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Should l Buy VLY?
Source: Newsfilter
Earnings Call Overview: Valley National Bancorp held its Q3 2024 earnings conference call on October 24, 2024, featuring key executives including CEO Ira Robbins and CFO Mike Hagedorn, discussing the company's financial performance and outlook.
Forward-Looking Statements: The call included forward-looking statements regarding the bank's future, with participants encouraged to review SEC filings for detailed information on potential risks and uncertainties affecting actual results.
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Analyst Views on VLY
Wall Street analysts forecast VLY stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for VLY is 14.00 USD with a low forecast of 12.00 USD and a high forecast of 15.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
10 Analyst Rating
8 Buy
2 Hold
0 Sell
Strong Buy
Current: 13.540
Low
12.00
Averages
14.00
High
15.00
Current: 13.540
Low
12.00
Averages
14.00
High
15.00
About VLY
Valley National Bancorp is a bank holding company and a financial holding company. The Company’s principal subsidiary is Valley National Bank. Its segments include Consumer Banking, Commercial Banking and Treasury and Corporate Other. The Consumer Banking comprises residential mortgages and automobile loans, and to a lesser extent, secured personal lines of credit, home equity loans and other consumer loans. Consumer Banking also includes the wealth management and insurance services division, comprised of asset management advisory, brokerage, trust, personal and title insurance, tax credit advisory services, and international and domestic private banking businesses. The Commercial Banking comprises floating rate and adjustable rate commercial and industrial loans and construction loans, and adjustable and fixed-rate owner-occupied and commercial real estate loans. It also offers niche financial services, including loan and deposit products for homeowners’ associations and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Leeward Investments Increases Stake in Valley National Bancorp
- Increased Holdings: Leeward Investments acquired an additional 322,500 shares of Valley National Bancorp in Q4, valued at approximately $3.58 million, indicating confidence in the company's growth potential and future prospects.
- Value Appreciation: By the end of the quarter, Leeward's total holdings in Valley National Bancorp reached $22.33 million, an increase of $5.48 million from the previous period, reflecting steady performance improvements and positive investor sentiment.
- Strong Financial Performance: Valley National Bancorp reported a net income of $195.4 million in Q4, translating to $0.33 per diluted share, a significant increase from $0.20 a year earlier, demonstrating ongoing enhancements in profitability.
- Competitive Market Position: By increasing deposits by $1.0 billion and optimizing its loan portfolio, Valley National Bancorp improved its net interest margin to 3.17%, maintaining a robust market position in a highly competitive financial landscape.
See More
Wall Street's Latest Rating Changes Overview
- GE Vernova Upgrade: Guggenheim upgraded GE Vernova from Neutral to Buy with a price target of $910, indicating that the market may be underestimating its cash generation potential and capital returns, suggesting further margin improvements in its electrification segment.
- Apple Remains Bullish: Bank of America reiterated its Buy rating on Apple, forecasting that iPhone upgrades will exceed expectations by 2026, while gross margins continue to rise despite commodity pressures, showcasing the company's robust performance across multiple sectors.
- Western Digital Price Target Raised: Morgan Stanley increased Western Digital's price target from $260 to $306, emphasizing the market's underappreciation of its sustainable pricing tailwinds and margin flow-through, reflecting a strong demand outlook.
- Spotify Rating Upgrade: Citi upgraded Spotify from Neutral to Buy, citing attractive valuation and beatable consensus estimates, with several positive catalysts expected to drive stock price increases.
See More
Valley National Bancorp Reports Record Earnings in Q4 2025
- Record Earnings: Valley National Bancorp achieved a net income of approximately $195 million in Q4 2025, translating to $0.33 per diluted share, reflecting a significant increase from $0.28 in the previous quarter and showcasing enhanced profitability.
- Core Deposit Growth: Core deposits grew by nearly $4 billion, representing a year-over-year increase of about 9%, which underpins the company's profitability and further strengthens its capital and liquidity positions.
- Strong Loan Growth: Total loans increased by $800 million, with an annualized growth rate of 7%, and commercial real estate loans saw sequential growth for the first time since Q2 2024, demonstrating the effectiveness of the relationship-focused strategy.
- Optimistic Outlook: Management projects net interest income growth of 11% to 13% for 2026 and plans to enhance small business sales efforts, improve branch productivity, and explore new growth-oriented deposit niches to drive sustained business growth.
See More
Valley National Bancorp Q4 Earnings Exceed Expectations
- Earnings Beat: Valley National Bancorp reported a Q4 non-GAAP EPS of $0.31, surpassing expectations by $0.02, indicating stable profitability and growth potential for the company.
- Significant Revenue Growth: The bank's Q4 revenue reached $541.2 million, marking a 14.1% year-over-year increase, which not only exceeded expectations by $15.53 million but also reflects its competitive position and business expansion capabilities.
- Market Performance Monitoring: Despite underperformance, analysts maintain a neutral outlook on Valley National Bancorp's future prospects, suggesting ongoing confidence in its long-term strategic direction.
- Attractive Income Play: The company's reset preferred shares yielding 8% are viewed as a great income investment option, appealing to investors seeking stable cash flow and enhancing its attractiveness in the income investment space.
See More
Valley National Bancorp to Announce Q4 Earnings on January 29
- Earnings Announcement: Valley National Bancorp (VLY) is set to release its Q4 2023 earnings report on January 29 before market open, with consensus EPS estimate at $0.29, reflecting a significant year-over-year increase of 123.1%, indicating a strong recovery in profitability.
- Revenue Expectations: The revenue for the quarter is projected at $525.67 million, representing a year-over-year growth of 10.9%, which highlights the company's robust growth and effective revenue diversification strategies in the market.
- Historical Performance Review: Over the past two years, VLY has exceeded EPS estimates 38% of the time and revenue estimates 63% of the time, demonstrating the company's stability in profitability and revenue growth.
- Estimate Revision Dynamics: In the last three months, EPS estimates have seen 7 upward revisions and 1 downward revision, while revenue estimates have experienced 5 upward and 4 downward revisions, reflecting analysts' confidence in the company's future performance and fluctuations in market expectations.
See More
Dave Inc. and Others Show Strong EPS Revisions Ahead of Earnings Season
- Earnings Outlook: As earnings season approaches, companies like Dave Inc. (DAVE) have shown strong performance in EPS revisions, achieving an A+ rating that indicates robust upward adjustments in analyst earnings expectations, suggesting potential outperformance in upcoming results.
- Leading Quant Ratings: According to Seeking Alpha's Quant Ratings system, Dave Inc. leads with a score of 4.83, followed closely by Hagerty (HGTY) at 4.82 and Valley National Bancorp (VLY) at 4.74, highlighting their superior performance across critical metrics such as valuation, growth, and profitability.
- Investment Opportunities: These highly rated mid-cap financial stocks present compelling investment opportunities, especially in the current economic climate, allowing investors to leverage quantitative analysis tools for better assessment of potential returns.
- Positive Market Sentiment: Seeking Alpha's rating system categorizes scores of 3.5 and above as bullish, with many companies currently rated above this threshold, reflecting optimistic market sentiment towards mid-cap financial stocks, which may drive stock prices higher.
See More
Leeward Investments Increases Stake in Valley National Bancorp
- Increased Holdings: Leeward Investments acquired an additional 322,500 shares of Valley National Bancorp in Q4, valued at approximately $3.58 million, indicating confidence in the company's growth potential and future prospects.
- Value Appreciation: By the end of the quarter, Leeward's total holdings in Valley National Bancorp reached $22.33 million, an increase of $5.48 million from the previous period, reflecting steady performance improvements and positive investor sentiment.
- Strong Financial Performance: Valley National Bancorp reported a net income of $195.4 million in Q4, translating to $0.33 per diluted share, a significant increase from $0.20 a year earlier, demonstrating ongoing enhancements in profitability.
- Competitive Market Position: By increasing deposits by $1.0 billion and optimizing its loan portfolio, Valley National Bancorp improved its net interest margin to 3.17%, maintaining a robust market position in a highly competitive financial landscape.
See More
Wall Street's Latest Rating Changes Overview
- GE Vernova Upgrade: Guggenheim upgraded GE Vernova from Neutral to Buy with a price target of $910, indicating that the market may be underestimating its cash generation potential and capital returns, suggesting further margin improvements in its electrification segment.
- Apple Remains Bullish: Bank of America reiterated its Buy rating on Apple, forecasting that iPhone upgrades will exceed expectations by 2026, while gross margins continue to rise despite commodity pressures, showcasing the company's robust performance across multiple sectors.
- Western Digital Price Target Raised: Morgan Stanley increased Western Digital's price target from $260 to $306, emphasizing the market's underappreciation of its sustainable pricing tailwinds and margin flow-through, reflecting a strong demand outlook.
- Spotify Rating Upgrade: Citi upgraded Spotify from Neutral to Buy, citing attractive valuation and beatable consensus estimates, with several positive catalysts expected to drive stock price increases.
See More
Valley National Bancorp Reports Record Earnings in Q4 2025
- Record Earnings: Valley National Bancorp achieved a net income of approximately $195 million in Q4 2025, translating to $0.33 per diluted share, reflecting a significant increase from $0.28 in the previous quarter and showcasing enhanced profitability.
- Core Deposit Growth: Core deposits grew by nearly $4 billion, representing a year-over-year increase of about 9%, which underpins the company's profitability and further strengthens its capital and liquidity positions.
- Strong Loan Growth: Total loans increased by $800 million, with an annualized growth rate of 7%, and commercial real estate loans saw sequential growth for the first time since Q2 2024, demonstrating the effectiveness of the relationship-focused strategy.
- Optimistic Outlook: Management projects net interest income growth of 11% to 13% for 2026 and plans to enhance small business sales efforts, improve branch productivity, and explore new growth-oriented deposit niches to drive sustained business growth.
See More
Valley National Bancorp Q4 Earnings Exceed Expectations
- Earnings Beat: Valley National Bancorp reported a Q4 non-GAAP EPS of $0.31, surpassing expectations by $0.02, indicating stable profitability and growth potential for the company.
- Significant Revenue Growth: The bank's Q4 revenue reached $541.2 million, marking a 14.1% year-over-year increase, which not only exceeded expectations by $15.53 million but also reflects its competitive position and business expansion capabilities.
- Market Performance Monitoring: Despite underperformance, analysts maintain a neutral outlook on Valley National Bancorp's future prospects, suggesting ongoing confidence in its long-term strategic direction.
- Attractive Income Play: The company's reset preferred shares yielding 8% are viewed as a great income investment option, appealing to investors seeking stable cash flow and enhancing its attractiveness in the income investment space.
See More
Valley National Bancorp to Announce Q4 Earnings on January 29
- Earnings Announcement: Valley National Bancorp (VLY) is set to release its Q4 2023 earnings report on January 29 before market open, with consensus EPS estimate at $0.29, reflecting a significant year-over-year increase of 123.1%, indicating a strong recovery in profitability.
- Revenue Expectations: The revenue for the quarter is projected at $525.67 million, representing a year-over-year growth of 10.9%, which highlights the company's robust growth and effective revenue diversification strategies in the market.
- Historical Performance Review: Over the past two years, VLY has exceeded EPS estimates 38% of the time and revenue estimates 63% of the time, demonstrating the company's stability in profitability and revenue growth.
- Estimate Revision Dynamics: In the last three months, EPS estimates have seen 7 upward revisions and 1 downward revision, while revenue estimates have experienced 5 upward and 4 downward revisions, reflecting analysts' confidence in the company's future performance and fluctuations in market expectations.
See More
Dave Inc. and Others Show Strong EPS Revisions Ahead of Earnings Season
- Earnings Outlook: As earnings season approaches, companies like Dave Inc. (DAVE) have shown strong performance in EPS revisions, achieving an A+ rating that indicates robust upward adjustments in analyst earnings expectations, suggesting potential outperformance in upcoming results.
- Leading Quant Ratings: According to Seeking Alpha's Quant Ratings system, Dave Inc. leads with a score of 4.83, followed closely by Hagerty (HGTY) at 4.82 and Valley National Bancorp (VLY) at 4.74, highlighting their superior performance across critical metrics such as valuation, growth, and profitability.
- Investment Opportunities: These highly rated mid-cap financial stocks present compelling investment opportunities, especially in the current economic climate, allowing investors to leverage quantitative analysis tools for better assessment of potential returns.
- Positive Market Sentiment: Seeking Alpha's rating system categorizes scores of 3.5 and above as bullish, with many companies currently rated above this threshold, reflecting optimistic market sentiment towards mid-cap financial stocks, which may drive stock prices higher.
See More
