Lakeland Financial Reports Lower Than Expected Earnings and Revenue

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This news put a dent in Lakeland Financial ($NASDAQ:LKFN)’s share price, which had been steadily increasing since the start of the year. Despite the earnings miss, analysts remain largely bullish on the stock due to its long-term prospects and focus on organic growth. The company has recently been making investments that are expected to result in increased efficiency and decreased costs in the long-run. Lakeland Financial operates with a diversified business model that offers a variety of services to its customers, including commercial banking, consumer banking, and wealth management.

Additionally, the company has made significant investments in technology which have allowed it to remain competitive in the modern marketplace. With its recent earnings miss, Lakeland Financial has shown that it is not immune to the impact of the current economic environment. While the company’s shares may take a hit in the short-term, many analysts remain confident in its long-term prospects and potential for organic growth.

Market Price

On Tuesday, LAKELAND FINANCIAL reported earnings and revenue that were lower than expected. The stock opened at $56.5, but by the end of the day it had fallen to $55.0, a decrease of 2.0% from the previous closing price of 56.1. Investors reacted negatively to the news, pulling the stock down throughout the day. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Lakeland Financial. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Lakeland Financial. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Lakeland Financial. More…

Key Ratios Snapshot

Some of the financial key ratios for Lakeland Financial are shown below. More…

Analysis

Upon examining LAKELAND FINANCIAL‘s financials, our Star Chart has classified this company as a ‘rhino’, a type of company that we conclude has achieved moderate revenue or earnings growth. This could indicate that LAKELAND FINANCIAL has a good balance between short-term and long-term success. In terms of its financial health, LAKELAND FINANCIAL has earned a high health score of 9/10 with regard to its cashflows and debt, demonstrating that it is capable to safely ride out any crisis without the risk of bankruptcy. LAKELAND FINANCIAL is strong in profitability, asset, dividend, and medium in growth. Given its financial performance, this company could be an attractive investment opportunity for value investors who are looking for a safe but profitable company to invest in, as well as growth investors who are looking for steady returns from a company with moderate growth potential. More…

Peers

The bank operates over 60 branches in northern and central Indiana. Lakeland Financial Corp is the fourth largest bank in Indiana, with assets of $4.6 billion. The bank’s primary competitors are Amalgamated Financial Corp, Regions Financial Corp, and Banca Transilvania SA.

– Amalgamated Financial Corp ($NASDAQ:AMAL)

Amalgamated Financial Corporation is a holding company that operates through its subsidiaries in the life insurance, annuity, and asset management businesses in the United States. The company was founded in 1905 and is headquartered in New York, New York.

– Regions Financial Corp ($NYSE:RF)

Regions Financial Corporation is a bank holding company headquartered in Birmingham, Alabama. The company provides retail and commercial banking, trust, securities brokerage, mortgage and insurance products and services. As of December 31, 2016, Regions Financial Corporation had $125 billion in assets and operated 1,630 banking offices in 16 states.

– Banca Transilvania SA ($LTS:0DP9)

Banca Transilvania SA is a Romanian banking company with a market cap of 15.23B as of 2022. The company has a long history dating back to 1864, when it was founded as a regional bank in the city of Transylvania. Today, the bank is one of the leading financial institutions in Romania with a strong presence in both the retail and corporate banking sectors. The bank offers a wide range of products and services including savings and checking accounts, loans, credit cards, and investment services.

Summary

This could be attributed to investors’ concerns about the company’s profitability and growth prospects. Overall, this earnings report is indicative of weak performance and investors should analyze their options and make a well-informed decision before investing in Lakeland Financial Corporation.