Banking blues.City National Corp. was punished pun·ish v. pun·ished, pun·ish·ing, pun·ish·es v.tr. 1. To subject to a penalty for an offense, sin, or fault. 2. To inflict a penalty for (an offense). 3. by Wall Street last week after reporting first-quarter financials that failed to meet investor expectations. The bank reported April 19 that net income for the quarter ended March 31 rose 3 percent to $57.2 million, or $1.12 per share, compared with $55.5 million, or $1.09, a year ago. That was short of the $1.21 per share forecast of analysts polled by Thomson Financial Thomson Financial A major provider of information, analytical tools, and consulting services to the financial community. The firm, a division of Thomson Corporation, is best known to investors for its First Call segment, which publishes consensus earnings . As a result, shares of the Los Angeles-based parent company of City National Bank fell 8 percent to $71.50 on April 20, even though revenue rose 5 percent and total deposits hit $11.9 billion, compared with $11.76 billion a year ago. Management lowered earnings growth guidance for 2006 to a range of 8 percent to 10 percent for the year, from a range of 9 percent to 12 percent, citing slipping interest margins, slower-than-expected deposit growth and a drop in real estate construction loans for the lackluster lack·lus·ter adj. Lacking brightness, luster, or vitality; dull. See Synonyms at dull. Adj. 1. lackluster - lacking brilliance or vitality; "a dull lackluster life"; "a lusterless performance" growth. The results prompted various responses from analysts. City National shares were downgraded to "hold" from "buy" by analyst Campbell Campbell, city, United States Campbell, city (1990 pop. 36,048), Santa Clara co., W Calif., in the fertile Santa Clara valley; founded 1885, inc. 1952. K. Chaney at Sanders San´ders n. 1. An old name of sandalwood, now applied only to the red sandalwood. See under Sandalwood. Morris Harris, and cut to "market perform" from "outperform Outperform An analyst recommendation meaning a stock is expected to do slightly better than the market return. Notes: Exact definitions vary by brokerage, but in general this rating is better than neutral and worse than buy or strong buy. " by analyst Gary Townsend at Friedman, Billings, Ramsey & Co. In contrast, Jacqueline Reeves at Ryan Beck & Co. raised her rating to "outperform" from "market perform." Adam Barkstrom at Stifel, Nicolaus & Co. reiterated his "buy" rating, blaming lower earnings primarily on a fall in net interest income. |
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