UBS Q3 EPS of $0.85 Misses Consensus as Capital-Rule Fight Drags On
UBS sits 28% above its 52-week low of $36.295.
Summary
UBS posted Q3 diluted EPS of $0.85, up from $0.76 a year ago but short of the $0.86 Visible Alpha consensus and down from $0.87 in Q2. Revenue of $13.35B beat the $13.14B estimate even though it slipped from $13.70B last quarter, and the CET1 ratio rose to 14.7% from 14.4%. The miss is small, but it lands in the middle of UBS's fight over Switzerland's proposed capital rules — CEO Sergio Ermotti said the bank will keep engaging constructively with Parliament, warning the rules must not impose undue costs on shareholders or hurt its competitive position. That follows September lobbying by Ermotti and October reports that UBS has drawn up contingency plans, including a headquarters move or a bank merger, if the rules go through as drafted. For Q4, UBS guided to a more typical sequential seasonal moderation in transaction volumes.
At the time of this announcement, UBS was trading at $46.35 on NYSE in the Finance sector, with a market capitalization of approximately $143.3B. The 52-week trading range was $36.30 to $55.99. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Seeking Alpha.