Regional banking company Eastern Bankshares (NASDAQ:EBC) will be announcing earnings results this Thursday after market hours. Here’s what you need to know.
Eastern Bank missed analysts’ revenue expectations by 121% last quarter, reporting revenues of -$47.22 million, down 130% year on year. It was a softer quarter for the company, with a significant miss of analysts’ net interest income estimates and EPS in line with analysts’ estimates.
Is Eastern Bank a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Eastern Bank’s revenue to grow 54.8% year on year to $238.4 million, a reversal from the 8.2% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.38 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Eastern Bank has missed Wall Street’s revenue estimates six times over the last two years.
Looking at Eastern Bank’s peers in the regional banks segment, some have already reported their Q2 results, giving us a hint as to what we can expect. City Holding delivered year-on-year revenue growth of 6.3%, beating analysts’ expectations by 3%, and Texas Capital Bank reported revenues up 15.2%, topping estimates by 2.7%. Texas Capital Bank traded up 4.8% following the results.
Read our full analysis of City Holding’s results here and Texas Capital Bank’s results here.
There has been positive sentiment among investors in the regional banks segment, with share prices up 8.2% on average over the last month. Eastern Bank is up 12.6% during the same time and is heading into earnings with an average analyst price target of $19 (compared to the current share price of $16.50).
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