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Piper Sandler still cautious on Great Southern Bancorp stock despite Q2 earnings beat

EditorEmilio Ghigini
Published 17/07/2024, 14:02
GSBC
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On Wednesday, Piper Sandler maintained a Neutral rating on Great Southern Bancorp (NASDAQ:GSBC) stock, with a steady price target of $53.00. The financial institution reported its second quarter 2024 earnings per share (EPS) at $1.45, but when excluding core conversion items, the adjusted EPS is calculated at $1.33. This adjusted figure surpasses Piper Sandler's estimate by $0.09 and the consensus on Wall Street by $0.12.

Great Southern Bancorp's financial outcomes for the quarter were positively influenced by a negative $0.6 million provision for credit losses, contrasting with Piper Sandler's anticipation of a $1.0 million provision. This variance contributed $0.11 per share to the earnings. Additionally, the company experienced net recoveries during the quarter.

The bank also saw an increase in fee income, which slightly exceeded expectations by $0.01. On the other hand, core operating expenses were on the rise and turned out to be $0.06 higher than Piper Sandler's projections. A lower tax rate than anticipated by the firm also played a role, adding $0.03 to the EPS relative to their forecast.

The earnings report demonstrates Great Southern Bancorp's ability to outperform analyst expectations in terms of core profitability for the second quarter of 2024. The company's financial health was bolstered by net recoveries and a favorable tax environment, despite an uptick in core expenses. Piper Sandler's reiteration of the Neutral rating and $53.00 price target reflects a consistent view on the stock's valuation following the latest quarterly results.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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