Grupo Financiero Upped to Strong Buy - Analyst Blog
August 29 2013 - 7:30PM
Zacks
On Aug 28, Zacks Investment Research upgraded Grupo
Financiero Galicia S.A. (GGAL) to a Zacks Rank #1 (Strong
Buy).
Why the Upgrade?
Grupo Financiero has been witnessing rising earnings estimates
following the announcement of robust second-quarter 2013 results.
Moreover, this Argentinean bank has delivered an average beat of
5.6% in the past four quarters.
Grupo Financiero reported second-quarter 2013 results on Aug 8.
Earnings per share of 56 cents surpassed the Zacks Consensus
Estimate by 4 cents. Results benefited from top-line growth and a
rise in provision for credit losses, partially offset by higher
administrative expenses.
Results were also boosted by the income derived from Grupo
Financiero’s stake in Banco de Galicia y Buenos Aires S.A. and in
Sudamericana Holding S.A. and from the deferred tax adjustment of
15.1 million pesos ($2.9 million).
Financial income rose 7.4% sequentially to $2.9 billion pesos ($0.6
billion). Moreover, income from services jumped 14.3% to $1.0
billion pesos ($0.2 billion). On the flip side, administrative
expenses rose 9.2% from the prior quarter to $1.8 billion pesos.
($0.3 billion). However, provision for loan losses dropped 1.4% to
434.7 million pesos ($82.8 million).
Additionally, following the earnings release, the Zacks Consensus
Estimate for 2013 increased 3.4% to $2.11 per share over the last 7
days. Similarly, for 2014, the Zacks Consensus Estimate advanced
7.4% to $2.04 per share over the same time period.
Positive earnings surprises and favorable estimate revisions
stimulated the rank upgrade.
Other Stocks to Consider
While we prefer Grupo Financiero, other stocks carrying a Zacks
Rank #1 include Glacier Bancorp Inc. (GBCI),
Prosperity Bancshares Inc. (PB) and
Sumitomo Mitsui Financial Group Inc. (SMFG).
GLACIER BANCORP (GBCI): Free Stock Analysis Report
GRUPO GALIC ADR (GGAL): Free Stock Analysis Report
PROSPERITY BCSH (PB): Free Stock Analysis Report
SUMITOMO-MITSUI (SMFG): Free Stock Analysis Report
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