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Western Alliance (WAL) Q1 Earnings: Taking a Look at Key Metrics Versus Estimates
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For the quarter ended March 2024, Western Alliance (WAL - Free Report) reported revenue of $738.4 million, up 31.7% over the same period last year. EPS came in at $1.72, compared to $2.30 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $711.34 million, representing a surprise of +3.80%. The company delivered an EPS surprise of +1.78%, with the consensus EPS estimate being $1.69.
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.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
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: 65.2% compared to the 60.6% average estimate based on six analysts.
Net Interest Margin: 3.6% versus the six-analyst average estimate of 3.5%.
Average Balance - Total interest earning assets: $68.02 billion versus $66.94 billion estimated by five analysts on average.
Net charge-offs to average loans - annualized: 0.1% versus the four-analyst average estimate of 0.1%.
Tier 1 Leverage Ratio: 8.5% versus the two-analyst average estimate of 8.7%.
Total non-interest income: $129.90 million compared to the $108.46 million average estimate based on six analysts.
Net interest income: $598.90 million versus the five-analyst average estimate of $597.28 million.
Net loan servicing revenue: $46.40 million compared to the $26.33 million average estimate based on four analysts.
Net gain on loan origination and sale activities: $45.30 million versus $49.11 million estimated by four analysts on average.
Service charges and fees: $9.90 million versus $22.83 million estimated by four analysts on average.
Commercial banking related income: $6.50 million compared to the $5.76 million average estimate based on four analysts.
Income from equity investments: $17.10 million versus the three-analyst average estimate of $1.50 million.
Shares of Western Alliance have returned -10% over the past month versus the Zacks S&P 500 composite's -1.7% 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) Q1 Earnings: Taking a Look at Key Metrics Versus Estimates
For the quarter ended March 2024, Western Alliance (WAL - Free Report) reported revenue of $738.4 million, up 31.7% over the same period last year. EPS came in at $1.72, compared to $2.30 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $711.34 million, representing a surprise of +3.80%. The company delivered an EPS surprise of +1.78%, with the consensus EPS estimate being $1.69.
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.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
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: 65.2% compared to the 60.6% average estimate based on six analysts.
- Net Interest Margin: 3.6% versus the six-analyst average estimate of 3.5%.
- Average Balance - Total interest earning assets: $68.02 billion versus $66.94 billion estimated by five analysts on average.
- Net charge-offs to average loans - annualized: 0.1% versus the four-analyst average estimate of 0.1%.
- Tier 1 Leverage Ratio: 8.5% versus the two-analyst average estimate of 8.7%.
- Total non-interest income: $129.90 million compared to the $108.46 million average estimate based on six analysts.
- Net interest income: $598.90 million versus the five-analyst average estimate of $597.28 million.
- Net loan servicing revenue: $46.40 million compared to the $26.33 million average estimate based on four analysts.
- Net gain on loan origination and sale activities: $45.30 million versus $49.11 million estimated by four analysts on average.
- Service charges and fees: $9.90 million versus $22.83 million estimated by four analysts on average.
- Commercial banking related income: $6.50 million compared to the $5.76 million average estimate based on four analysts.
- Income from equity investments: $17.10 million versus the three-analyst average estimate of $1.50 million.
View all Key Company Metrics for Western Alliance here>>>Shares of Western Alliance have returned -10% over the past month versus the Zacks S&P 500 composite's -1.7% 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.