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Western Alliance (WAL) Q4 Earnings: How Key Metrics Compare to Wall Street Estimates
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For the quarter ended December 2023, Western Alliance (WAL - Free Report) reported revenue of $691.3 million, down 2.7% over the same period last year. EPS came in at $1.91, compared to $2.67 in the year-ago quarter.
The reported revenue represents a surprise of -2.08% over the Zacks Consensus Estimate of $705.97 million. With the consensus EPS estimate being $1.93, the EPS surprise was -1.04%.
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 Western Alliance performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Efficiency Ratio: 66.8% compared to the 58.9% average estimate based on six analysts.
Net Interest Margin: 3.7% versus 3.6% estimated by six analysts on average.
Average Balance - Total interest earning assets: $65.33 billion versus the five-analyst average estimate of $65.18 billion.
Net charge-offs to average loans: 0.1% versus 0.1% estimated by four analysts on average.
Tier 1 Leverage Ratio: 8.6% compared to the 9.6% average estimate based on two analysts.
Total non-interest income: $90.50 million versus the six-analyst average estimate of $108.95 million.
Net interest income: $591.70 million versus $590.86 million estimated by five analysts on average.
Commercial banking related income: $5.90 million versus the four-analyst average estimate of $5.72 million.
Net gain on loan origination and sale activities: $47.80 million versus the four-analyst average estimate of $44.58 million.
Service charges and fees: $22.70 million compared to the $24.19 million average estimate based on four analysts.
Net loan servicing revenue (expense): $9.10 million versus the four-analyst average estimate of $25.56 million.
Other non-interest income: $8.10 million compared to the $6.70 million average estimate based on two analysts.
Shares of Western Alliance have returned -1% over the past month versus the Zacks S&P 500 composite's +2.5% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
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Western Alliance (WAL) Q4 Earnings: How Key Metrics Compare to Wall Street Estimates
For the quarter ended December 2023, Western Alliance (WAL - Free Report) reported revenue of $691.3 million, down 2.7% over the same period last year. EPS came in at $1.91, compared to $2.67 in the year-ago quarter.
The reported revenue represents a surprise of -2.08% over the Zacks Consensus Estimate of $705.97 million. With the consensus EPS estimate being $1.93, the EPS surprise was -1.04%.
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 Western Alliance performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
- Efficiency Ratio: 66.8% compared to the 58.9% average estimate based on six analysts.
- Net Interest Margin: 3.7% versus 3.6% estimated by six analysts on average.
- Average Balance - Total interest earning assets: $65.33 billion versus the five-analyst average estimate of $65.18 billion.
- Net charge-offs to average loans: 0.1% versus 0.1% estimated by four analysts on average.
- Tier 1 Leverage Ratio: 8.6% compared to the 9.6% average estimate based on two analysts.
- Total non-interest income: $90.50 million versus the six-analyst average estimate of $108.95 million.
- Net interest income: $591.70 million versus $590.86 million estimated by five analysts on average.
- Commercial banking related income: $5.90 million versus the four-analyst average estimate of $5.72 million.
- Net gain on loan origination and sale activities: $47.80 million versus the four-analyst average estimate of $44.58 million.
- Service charges and fees: $22.70 million compared to the $24.19 million average estimate based on four analysts.
- Net loan servicing revenue (expense): $9.10 million versus the four-analyst average estimate of $25.56 million.
- Other non-interest income: $8.10 million compared to the $6.70 million average estimate based on two analysts.
View all Key Company Metrics for Western Alliance here>>>Shares of Western Alliance have returned -1% over the past month versus the Zacks S&P 500 composite's +2.5% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.