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Cadence (CADE) Q1 Earnings: Taking a Look at Key Metrics Versus Estimates

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Cadence (CADE - Free Report) reported $428.34 million in revenue for the quarter ended March 2023, representing a year-over-year decline of 2.7%. EPS of $0.68 for the same period compares to $0.65 a year ago.

The reported revenue compares to the Zacks Consensus Estimate of $456.09 million, representing a surprise of -6.09%. The company delivered an EPS surprise of +3.03%, with the consensus EPS estimate being $0.66.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how Cadence performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

  • Net Interest Margin: 3.29% versus 3.19% estimated by six analysts on average.
  • Efficiency Ratio: 74.36% versus the six-analyst average estimate of 62.44%.
  • Net charge-offs to average loans: 0.02% versus 0.06% estimated by four analysts on average.
  • Average Balance - Total interest earning assets: $43.82 billion compared to the $42.91 billion average estimate based on four analysts.
  • Total noninterest income: $74.07 million compared to the $108.85 million average estimate based on six analysts.
  • Net Interest Income (FTE): $355.32 million compared to the $351.15 million average estimate based on five analysts.
  • Net Interest Income: $354.27 million versus the five-analyst average estimate of $349.95 million.
  • Insurance commissions: $39.61 million versus the three-analyst average estimate of $38.15 million.
  • Other noninterest income: $29.79 million compared to the $21.12 million average estimate based on three analysts.
  • Wealth Management: $21.53 million versus the three-analyst average estimate of $19.22 million.
  • Deposit Service charges: $16.48 million versus the three-analyst average estimate of $16.73 million.
  • Credit card, debit card and merchant fees: $11.85 million versus $15.14 million estimated by three analysts on average.
View all Key Company Metrics for Cadence here>>>

Shares of Cadence have returned -1.8% over the past month versus the Zacks S&P 500 composite's +3.3% change. The stock currently has a Zacks Rank #5 (Strong Sell), indicating that it could underperform the broader market in the near term.

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