Regions Financial Q3 Earnings Miss on Weaker Net Interest Income; 2023 Outlook Cut
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Regions Financial reported lower than expected Q3 earnings due to weaker net interest income and rising expenses.
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Regions revised its 2023 outlook for net interest income growth downward, reflecting higher funding costs.
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The market may be overreacting as Regions still has a good deposit base and the changes don't dramatically alter long-term expectations.
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The fair value estimate of $20 per share may be lowered by a mid-single digit percentage.
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The valuation is not as cheap as some peers but is getting closer after the recent selloff.