Equitable Group (TSE:EQB), known for operating Equitable Bank (or EQB), released its Q2-2023 financial results after market close yesterday. The bank beat earnings estimates and upped its guidance for Fiscal 2023, sending the stock higher today. EQB’s adjusted diluted earnings per share (EPS) were C$2.98, beating the consensus estimate of C$2.58, rising by an impressive 70% year-over-year and 14% quarter-over-quarter. Further, the company’s adjusted return on equity was 18.3%.
EQB’s year-over-year customer growth came in at 31%, while deposits increased by 8%. Importantly, the bank’s book value per share grew by 14% year-over-year and 4% quarter-over-quarter to reach C$67.33, and the dividend was raised by 3% compared to Q1 2023 (C$0.38 per share paid quarterly) and by 23% compared to the same period last year.
Finally, in light of the impressive performance, the company now expects 18-22% growth in diluted EPS for 2023 from the earlier 10-15%.
Is EQB Stock a Buy, According to Analysts?
According to analysts, EQB stock comes in a Strong Buy based on six unanimous Buy ratings assigned in the past three months. The average EQB stock price target of C$95.09 implies 17.4% upside potential.
If you’re wondering which analyst you should follow if you want to buy and sell EQB stock, the most accurate analyst covering the stock (on a one-year timeframe) is Graham Ryding of TD Securities, with an average return of 16.71% per rating and a 65% success rate. Click on the image below to learn more.
