Analysts on Wall Street project that Western Alliance (WAL) will announce quarterly earnings of $2.33 per share in its forthcoming report, representing an increase of 12.6% year over year. Revenues are projected to reach $973.85 million, increasing 13.8% from the same quarter last year.
Over the last 30 days, there has been a downward revision of 3.2% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timeframe.
Before a company reveals its earnings, it is vital to take into account any changes in earnings projections. These revisions play a pivotal role in predicting the possible reactions of investors toward the stock. Multiple empirical studies have consistently shown a strong association between trends in earnings estimates and the short-term price movements of a stock.
While investors typically use consensus earnings and revenue estimates as a yardstick to evaluate the company's quarterly performance, scrutinizing analysts' projections for some of the company's key metrics can offer a more comprehensive perspective.
Given this perspective, it's time to examine the average forecasts of specific Western Alliance metrics that are routinely monitored and predicted by Wall Street analysts.
The consensus among analysts is that 'Net Interest Margin' will reach 3.3%. The estimate compares to the year-ago value of 3.5%.
It is projected by analysts that the 'Efficiency Ratio' will reach 55.3%. Compared to the present estimate, the company reported 60.1% in the same quarter last year.
The combined assessment of analysts suggests that 'Total Non-Performing - Loan' will likely reach $467.40 million. Compared to the current estimate, the company reported $613.00 million in the same quarter of the previous year.
According to the collective judgment of analysts, 'Average Balance - Total interest earning assets' should come in at $91.25 billion. The estimate is in contrast to the year-ago figure of $80.53 billion.
Analysts' assessment points toward 'Total Non-Performing - Assets' reaching $528.29 million. The estimate is in contrast to the year-ago figure of $831.00 million.
Analysts predict that the 'Total non-interest income' will reach $182.88 million. The estimate compares to the year-ago value of $148.30 million.
The consensus estimate for 'Net gain on loan origination and sale activities' stands at $68.10 million. Compared to the present estimate, the company reported $39.40 million in the same quarter last year.
Analysts expect 'Net Interest Income (FTE)' to come in at $801.28 million. The estimate compares to the year-ago value of $707.80 million.
The collective assessment of analysts points to an estimated 'Service charges and fees' of $65.54 million. Compared to the present estimate, the company reported $36.90 million in the same quarter last year.
View all Key Company Metrics for Western Alliance here>>>Shares of Western Alliance have experienced a change of +4.3% in the past month compared to the +0.5% move of the Zacks S&P 500 composite. With a Zacks Rank #4 (Sell), WAL is expected to underperform the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
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Western Alliance Bancorporation (WAL): Free Stock Analysis Report
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