Prosperity Bancshares (PB) Q4 Earnings Preview: What You Should Know Beyond the Headline Estimates
Wall Street analysts forecast that Prosperity Bancshares (PB) will report quarterly earnings of $1.18 per share in its upcoming release, pointing to a year-over-year decline of 21.9%. It is anticipated that revenues will amount to $279.34 million, exhibiting a decline of 4.9% compared to the year-ago quarter.
The consensus EPS estimate for the quarter has been revised 3.7% lower over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.
Prior to a company's earnings announcement, it is crucial to consider revisions to earnings estimates. This serves as a significant indicator for predicting potential investor actions regarding the stock. Empirical research has consistently demonstrated a robust correlation between trends in earnings estimate revision and the short-term price performance of a stock.
While investors typically rely on consensus earnings and revenue estimates to gauge how the business may have fared during the quarter, examining analysts' projections for some of the company's key metrics often helps gain a deeper insight.
That said, let's delve into the average estimates of some Prosperity Bancshares metrics that Wall Street analysts commonly model and monitor.
Analysts predict that the 'Net Interest Margin (Tax Equivalent Basis)' will reach 2.8%. The estimate is in contrast to the year-ago figure of 3.1%.
Based on the collective assessment of analysts, 'Efficiency Ratio' should arrive at 48.9%. Compared to the current estimate, the company reported 40.9% in the same quarter of the previous year.
The collective assessment of analysts points to an estimated 'Average balance - Total interest-earning assets' of $34.73 billion. The estimate compares to the year-ago value of $33.39 billion.
According to the collective judgment of analysts, 'Tier 1 Risk-based Capital Ratio' should come in at 15.1%. Compared to the current estimate, the company reported 15.9% in the same quarter of the previous year.
It is projected by analysts that the 'Total nonperforming assets' will reach $75.18 million. Compared to the present estimate, the company reported $27.49 million in the same quarter last year.
Analysts expect 'Total nonperforming loans' to come in at $63.75 million. Compared to the present estimate, the company reported $25.53 million in the same quarter last year.
The consensus estimate for 'Tier 1 Leverage Capital Ratio' stands at 10.1%. The estimate compares to the year-ago value of 10.2%.
Analysts forecast 'Total Noninterest Income' to reach $38.69 million. Compared to the present estimate, the company reported $37.72 million in the same quarter last year.
The consensus among analysts is that 'Net Interest Income' will reach $240.69 million. Compared to the present estimate, the company reported $256.14 million in the same quarter last year.
The average prediction of analysts places 'Net Interest Income (Tax Equivalent Basis)' at $240.49 million. Compared to the current estimate, the company reported $256.58 million in the same quarter of the previous year.
The combined assessment of analysts suggests that 'Trust income' will likely reach $3.56 million. The estimate compares to the year-ago value of $3.50 million.
Analysts' assessment points toward 'Credit card, debit card and ATM card income' reaching $9.12 million. The estimate compares to the year-ago value of $8.82 million.
View all Key Company Metrics for Prosperity Bancshares here>>>
Prosperity Bancshares shares have witnessed a change of -1.7% in the past month, in contrast to the Zacks S&P 500 composite's +1.6% move. With a Zacks Rank #3 (Hold), PB is expected closely follow the overall market performance in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
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Prosperity Bancshares, Inc. (PB) : Free Stock Analysis Report
