Kearny Financial Q1 net income jumps 40% as margins expand
Kearny Financial reported a 40% increase in Q1 net income, reaching $9.5 million, up from $6.8 million in the previous quarter. Net interest income rose by 5.2% to $37.7 million, aided by margin expansion. The company is focusing on efficiency through automation and branch consolidations. Analysts maintain a "buy" rating on the stock, with a median 12-month price target of $7.25, reflecting a potential upside from its recent closing price of $6.71.
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Overview
- Kearny Financial Q1 net income rises to $9.5 mln, up from $6.8 mln in prior qtr
- Net interest income increased 5.2% to $37.7 mln, driven by margin expansion
Outlook
- Kearny Financial anticipates benefits from expected reductions in the federal funds rate
- Company focuses on enhancing efficiency through automation and branch consolidations
Result Drivers
- MARGIN EXPANSION - Net interest margin expanded by 10 basis points, contributing to a 36% increase in EPS
- AUTOMATION PARTNERSHIP - Partnership with The Lab Consulting aims to enhance operational efficiency through automation
- BRANCH CONSOLIDATION - Company consolidating branches to reallocate capital towards higher-return opportunities
Key Details
Metric Beat/Mis Actual Consensu
s s
Estimate
Q1 EPS $0.15
Q1 Net $9.50
Income mln
Q1 Net $37.70
Interest mln
Income
Analyst Coverage
- The current average analyst rating on the shares is “buy” and the breakdown of recommendations is 1 “strong buy” or “buy”, 1 “hold” and no “sell” or “strong sell”
- The average consensus recommendation for the banks peer group is “buy”
- Wall Street’s median 12-month price target for Kearny Financial Corp is $7.25, about 7.4% above its October 21 closing price of $6.71
Press Release: For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact . (This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)
