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Bank Stocks' Earnings Slated on Oct 26: HBAN, CFR, BOKF, PB
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The Q3 earnings season for the banking sector is in full swing. So far, most of the banks have been able to outperform the estimates, despite a challenging operating environment. This has substantially lifted market sentiments for banking stocks.
Per our Earnings Preview report, overall earnings for the Finance sector (of which banks constitute a large part) are expected to increase 14.4% year over year in third-quarter 2016. Notably, during the previous quarter, the sector had reflected a 5.2% decline in earnings.
The improvement in finance sector indicates a better environment to some extent with positives, including rebound in oil prices and continued recovery of the U.S. economy. Also, rise in demand for loans (primarily commercial and industrial and commercial real estate loans) is expected to support top-line growth.
In addition, expense control initiatives are likely to continue supporting the bottom line. Also, the provision requirement is not likely to be high as it was in the first half of 2016, thanks to the rebound in oil prices. However, margin pressure will continue to hurt interest income.
Let’s have a look at how our model offers insights into the expected performances of the companies.
Per our quantitative model, in order to be confident of an earnings surprise, a stock needs to have the right combination of the two key criteria – a favorable Zacks Rank – Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) – and a positive Earnings ESP.
Earnings ESP is our proprietary methodology for identifying stocks that have high chances of surprising with their upcoming earnings announcement. It shows the percentage of difference between the Most Accurate Estimate and the Zacks Consensus Estimate. Our research shows that for stocks with this combination, the chance of a positive earnings surprise is as high as 70%.
Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.
Today, we are discussing four banking stocks slated to release their third-quarter results tomorrow, before the market opens.
Huntington Bancshares Incorporated (HBAN - Free Report) is expected to witness revenue growth in the quarter, despite margin pressure. Further, normalized credit quality will support the results. However, mounting expenses will hurt the bottom line. (Read more: What's in Store for Huntington in Q3 Earnings?)
With a Zacks Rank #3 and Earnings ESP of 0.00%, we conclusively cannot predict earnings beat for Huntington Bancshares this time around. Notably, Huntington Bancshares boasts a decent earnings surprise history.
Cullen/Frost Bankers, Inc. (CFR - Free Report) has a Zacks Consensus Estimate of $1.16 for the third quarter, which reflects a year-over-year decline of 1.4%. Notably, estimates have increased by a penny over the past 30 days.
Carrying a Zacks Rank #3 and an Earnings ESP of +0.86%, the chances of Cullen/Frost Bankers beating the Zacks Consensus Estimate are high for this quarter. Besides, this stock has a decent earnings surprise history.
The Zacks Consensus Estimate for BOK Financial Corporation (BOKF - Free Report) has increased by a cent to $1.11 per share over the last 30 days. The estimate reflects a year-over-year rise of 1.7%.
With a Zacks Rank #3 and Earnings ESP of -1.80%, the chances of BOK Financial beating the Zacks Consensus Estimate are low for this time. Also, the stock does not have a decent earnings surprise history.
Prosperity Bancshares Inc. (PB - Free Report) has a Zacks Consensus Estimate of 99 cents for the upcoming release. It reflects a year-over-year decline of about 2.1%. Notably, the Zacks Consensus Estimate has remained stable over the past 30 days.
With a Zacks Rank #3 and Earnings ESP of 0.00%, we conclusively cannot predict earnings beat for Prosperity Bancshares for the third quarter. Nonetheless, the stock boasts an impressive earnings surprise history.
Stay tuned! Check back on our full write-up on earnings releases of these stocks.
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Bank Stocks' Earnings Slated on Oct 26: HBAN, CFR, BOKF, PB
The Q3 earnings season for the banking sector is in full swing. So far, most of the banks have been able to outperform the estimates, despite a challenging operating environment. This has substantially lifted market sentiments for banking stocks.
Per our Earnings Preview report, overall earnings for the Finance sector (of which banks constitute a large part) are expected to increase 14.4% year over year in third-quarter 2016. Notably, during the previous quarter, the sector had reflected a 5.2% decline in earnings.
The improvement in finance sector indicates a better environment to some extent with positives, including rebound in oil prices and continued recovery of the U.S. economy. Also, rise in demand for loans (primarily commercial and industrial and commercial real estate loans) is expected to support top-line growth.
In addition, expense control initiatives are likely to continue supporting the bottom line. Also, the provision requirement is not likely to be high as it was in the first half of 2016, thanks to the rebound in oil prices. However, margin pressure will continue to hurt interest income.
Let’s have a look at how our model offers insights into the expected performances of the companies.
Per our quantitative model, in order to be confident of an earnings surprise, a stock needs to have the right combination of the two key criteria – a favorable Zacks Rank – Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) – and a positive Earnings ESP.
Earnings ESP is our proprietary methodology for identifying stocks that have high chances of surprising with their upcoming earnings announcement. It shows the percentage of difference between the Most Accurate Estimate and the Zacks Consensus Estimate. Our research shows that for stocks with this combination, the chance of a positive earnings surprise is as high as 70%.
Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.
Today, we are discussing four banking stocks slated to release their third-quarter results tomorrow, before the market opens.
Huntington Bancshares Incorporated (HBAN - Free Report) is expected to witness revenue growth in the quarter, despite margin pressure. Further, normalized credit quality will support the results. However, mounting expenses will hurt the bottom line. (Read more: What's in Store for Huntington in Q3 Earnings?)
With a Zacks Rank #3 and Earnings ESP of 0.00%, we conclusively cannot predict earnings beat for Huntington Bancshares this time around. Notably, Huntington Bancshares boasts a decent earnings surprise history.
HUNTINGTON BANC Price and EPS Surprise
HUNTINGTON BANC Price and EPS Surprise | HUNTINGTON BANC Quote
(You can see the complete list of today’s Zacks #1 Rank stocks here.)
Cullen/Frost Bankers, Inc. (CFR - Free Report) has a Zacks Consensus Estimate of $1.16 for the third quarter, which reflects a year-over-year decline of 1.4%. Notably, estimates have increased by a penny over the past 30 days.
Carrying a Zacks Rank #3 and an Earnings ESP of +0.86%, the chances of Cullen/Frost Bankers beating the Zacks Consensus Estimate are high for this quarter. Besides, this stock has a decent earnings surprise history.
CULLEN FROST BK Price and EPS Surprise
CULLEN FROST BK Price and EPS Surprise | CULLEN FROST BK Quote
The Zacks Consensus Estimate for BOK Financial Corporation (BOKF - Free Report) has increased by a cent to $1.11 per share over the last 30 days. The estimate reflects a year-over-year rise of 1.7%.
With a Zacks Rank #3 and Earnings ESP of -1.80%, the chances of BOK Financial beating the Zacks Consensus Estimate are low for this time. Also, the stock does not have a decent earnings surprise history.
BOK FINL CORP Price and EPS Surprise
BOK FINL CORP Price and EPS Surprise | BOK FINL CORP Quote
Prosperity Bancshares Inc. (PB - Free Report) has a Zacks Consensus Estimate of 99 cents for the upcoming release. It reflects a year-over-year decline of about 2.1%. Notably, the Zacks Consensus Estimate has remained stable over the past 30 days.
With a Zacks Rank #3 and Earnings ESP of 0.00%, we conclusively cannot predict earnings beat for Prosperity Bancshares for the third quarter. Nonetheless, the stock boasts an impressive earnings surprise history.
PROSPERITY BCSH Price and EPS Surprise
PROSPERITY BCSH Price and EPS Surprise | PROSPERITY BCSH Quote
Stay tuned! Check back on our full write-up on earnings releases of these stocks.
Confidential from Zacks
This week, Zacks researchers have named 7 other stocks that look to break out even sooner than today's Bull of the Day. You can see these time-sensitive tickers free, and access additional trades that are not available to the public. Simply click here>>