Regional banking company Webster Financial (NYSE: WBS) will be reporting results this Thursday before the bell. Here’s what to look for.
Webster Financial met analysts’ revenue expectations last quarter, reporting revenues of $704.8 million, up 5.7% year on year. It was a slower quarter for the company, with a significant miss of analysts’ EPS estimates and tangible book value per share in line with analysts’ estimates.
Is Webster Financial a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Webster Financial’s revenue to grow 16.2% year on year to $714 million, a reversal from the 8.7% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.43 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings.
Looking at Webster Financial’s peers in the banks segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Fulton Financial’s revenues decreased 3.2% year on year, beating analysts’ expectations by 1.9%, and FB Financial reported a revenue decline of 40.1%, falling short of estimates by 43.5%. FB Financial traded down 4.4% following the results.
Read our full analysis of Fulton Financial’s results here and FB Financial’s results here.
There has been positive sentiment among investors in the banks segment, with share prices up 8.3% on average over the last month. Webster Financial is up 12.5% during the same time and is heading into earnings with an average analyst price target of $66.13 (compared to the current share price of $57.91).
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