Great Southern Bancorp Q2 prelim EPS falls on non-recurring expenses, cuts workforce

Great Southern Bancorp, Inc.

Great Southern Bancorp, Inc.

GSBC

0.00


Overview

  • U.S. regional bank's preliminary Q2 EPS fell yr/yr, impacted by one-time consolidation expenses

  • Preliminary Q2 net income declined, reflecting branch closures and workforce reductions

  • Net interest income for Q2 dropped 2.9% yr/yr, mainly due to lower swap-related income


Outlook

  • Company expects operational efficiencies to begin impacting results in fourth qtr 2026

  • Company anticipates annual pre-tax income to rise by over $2 mln from branch consolidations

  • Company expects effective tax rate of 18.0% to 19.5% in future periods


Result Drivers

  • ONE-TIME EXPENSES - Q2 results were negatively impacted by $2.1 mln in non-recurring expenses from branch consolidations and workforce reductions, including the closure of two commercial lending locations

  • LOWER SWAP INCOME - Net interest income fell due to the end of income recognition from a terminated interest rate swap and lower loan balances and market rates

  • NON-RECURRING INCOME IN PRIOR YEAR - Non-interest income declined as the prior-year quarter included $1.1 mln from tax credit partnership activities that did not recur


Company press release: ID:nGNX1FYkD2


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q2 EPS

$1.43

$1.38 (2 Analysts)

Q2 Net Income

$15.80 mln

$14.88 mln (2 Analysts)

Q2 Net Interest Income

$49.49 mln

Q2 Provision (credit) for credit losses on loans and unfunded commitments

$8,000


Analyst Coverage

  • The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the banks peer group is "buy."

  • Wall Street's median 12-month price target for Great Southern Bancorp Inc is $71.00, about 7.7% below its July 14 closing price of $76.96

  • The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 12 three months ago


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