The parent company of PlainsCapital Corporation Hilltop Holdings (HTH) announced third quarter earnings before the bell on Nov. 12, and the company showed profits that exceeded expectations.
Though revenues came in below expectations, the Dallas-based Hilltop was able to increase profits by cutting costs significantly. Expenses came in at $44 million less than the previous quarter, with employee benefits and compensation decreasing 10.2 percent, or $13.5 million.
In the earnings report, Hilltop CEO Jeremy Ford downplayed any worry about decreasing revenues, attributing them to macro factors out of their control, while highlighting the leaner company profile. Ford also touted the holding company’s third quarter earnings as being indicative of Hiltop’s rosy future, and said earnings “illustrate the diversity of our businesses and their collective profitability.”
For their third quarter 2013 earnings report, Hilltop reported a net gain of $31.8 million, or $0.36 per share, versus the net loss of $4.0 million, or $0.07 per share, from the same period a year ago. Revenue for the quarter was $277.8 million, as compared to $42.8 million from the previous year. Analysts were expecting a net gain of $0.32 per share on revenues of $287 million.
Hilltop rose 8.4 percent on the earnings report to hit $18.72 a share.
