CIT Group reported Quarter three earnings pre market open on
November 3rd. CIT Group posted EPS at $.80 and revenues of 520.9M.
CIT Group beat estimates by $.09 and $.54M, yet the street reacted negatively
to the beat, dropping CIT Group 2.5% on November 3rd. In the Transportation
and North American banking business, CIT Grew to just over a billion dollars
excluding the recent acquired assets. In transportation the commercial aircraft
utilization rose slightly to 98%, and railcars declined to 97% which is because
of the weaknesses in the commodity markets. CIT Group is continuing to
participate in a share buyback program, and they provided investors a total of
$170 million dollars.
Acquiring OneWest Bank increased CIT’s assets by almost 22
billion, which included 6 billion in cash, 8 billion in loans, and 6 billion in
a run off mortgage portfolio. Net financing margin increased by 30 basis points
to 3.7%, mostly because of a lower funding cost now. CIT’s transition to a
commercial bank looks like it paying off, and with the possible increase in
interest rates, CIT Group would only become more profitable, especially with
the new acquisition.
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