Columbia Banking's Q2 Earnings Disappoint: Analysts Slash Price Targets

Columbia Banking System Inc COLB shares are trading lower after it reported worse-than-expected Q2 earnings.

The company reported revenues of $523.65 million, missing the consensus of $584.7 million, and operating EPS of $0.81 missed the street estimate of $0.93. 

COLB maintained a 2023 outlook for average earning assets in the range of $45 billion-$46 billion and reduced guidance for an adjusted net interest margin to 3.75%-3.95% (from 4.15% to 4.25%).

Consequently, several analysts lowered the price target on the company.

At a Strong Buy rating, Raymond James cut the price target to $27 from $28.  

At an Overweight rating, Wells Fargo lowered the price target to $25 from $29 and Stephens & Co. to $26 from $27.

Stephens analyst Andrew Terrell lowered operating EPS estimates to $3.23 (from $3.66) for 2023 and $3.20 (from $3.79) for 2024.

On the other hand, RBC Capital maintained the price target at $26 with a Sector Perform rating.

Analyst Jon G. Arfstrom lowered the operating EPS estimate to $2.75 (from $3.48) for 2023 and $3.20 (from $3.98). 

Also, Wedbush reiterated the price target at $24 with a Neutral rating.

Meanwhile, the analyst reduced core EPS estimates to $2.63 (from $3.77) for 2023, $3.10 (from $4.40) for 2024, and $3.50 (from $4.75) for 2025, mainly to lower NIM assumptions.

Price Action: COLB shares are trading lower by 9.98% at $21.41 on the last check Thursday.