Analysts on Wall Street project that Western Alliance (WAL) will announce quarterly earnings of $2.43 per share in its forthcoming report, representing an increase of 6.6% year over year. Revenues are projected to reach $989.04 million, increasing 4.3% from the same quarter last year.
The current level reflects a downward revision of 5.2% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period.
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.
Bearing this in mind, let's now explore the average estimates of specific Western Alliance metrics that are commonly monitored and projected by Wall Street analysts.
The average prediction of analysts places 'Efficiency Ratio' at 56.3%. The estimate is in contrast to the year-ago figure of 57.4%.
The consensus estimate for 'Net Interest Margin' stands at 3.5%. Compared to the present estimate, the company reported 3.5% in the same quarter last year.
Based on the collective assessment of analysts, 'Total Non-Performing - Loan' should arrive at $507.20 million. Compared to the present estimate, the company reported $679.00 million in the same quarter last year.
Analysts predict that the 'Average Balance - Total interest earning assets' will reach $92.52 billion. Compared to the present estimate, the company reported $85.33 billion in the same quarter last year.
It is projected by analysts that the 'Total Non-Performing - Assets' will reach $590.78 million. Compared to the present estimate, the company reported $809.00 million in the same quarter last year.
The collective assessment of analysts points to an estimated 'Tier 1 Leverage Ratio' of 8.3%. The estimate compares to the year-ago value of 8.1%.
Analysts forecast 'Total Capital Ratio' to reach 14.1%. The estimate compares to the year-ago value of 14.2%.
Analysts' assessment points toward 'Tier 1 Capital Ratio' reaching 12.0%. Compared to the current estimate, the company reported 12.4% in the same quarter of the previous year.
The consensus among analysts is that 'Total non-interest income' will reach $169.15 million. The estimate compares to the year-ago value of $187.80 million.
Analysts expect 'Net interest income' to come in at $811.62 million. The estimate is in contrast to the year-ago figure of $750.40 million.
The combined assessment of analysts suggests that 'Net Interest Income (FTE)' will likely reach $822.73 million. The estimate compares to the year-ago value of $760.10 million.
According to the collective judgment of analysts, 'Service charges and fees' should come in at $45.90 million. Compared to the present estimate, the company reported $35.40 million in the same quarter last year.
View all Key Company Metrics for Western Alliance here>>>Western Alliance shares have witnessed a change of -6.7% in the past month, in contrast to the Zacks S&P 500 composite's +2.1% move. With a Zacks Rank #4 (Sell), WAL is expected underperform 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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Western Alliance Bancorporation (WAL): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).