Amid an improving rate scenario, banks that reported earnings so far have delivered better-than-expected numbers. As a result, market sentiments for the banking sector have recovered to some extent.
Supported by strength in fixed income, currencies and equity trading, trading revenues for bank stocks are expected to improve. Moreover, banks are likely to witness an increase in investment banking fees based on robust M&A activity during the quarter, as well as higher debt and equity underwriting.
Notably, per the latest Earnings Outlook, overall earnings for Banks & Thrifts in the first-quarter 2017 are expected to be up 21% year over year.
Here is how the results are expected for the four banks that are set to report their first-quarter 2017 results on Apr 24.
Zions Bancorporation (ZION - Free Report) is slated to report results after the market closes. With a Zacks Rank #3 (Hold) and Earnings ESP of +1.85%, it is quite likely that the company will be able to beat the Zacks Consensus Estimate this time around.
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Net interest margin is expected to benefit from the Dec 2016 rate hike. Moreover, steady securities portfolio growth is likely to positively impact NII in the quarter. (Read More: Is Zions Likely to Beat Estimates in Q1 Earnings?)
Notably, Zions surpassed the Zacks Consensus Estimate in three of the trailing four quarters, as is depicted in the chart below:
TCF Financial Corporation is expected to release results before market open. Its Zacks Consensus Estimate of 26 cents remained stable for the past 30 days. The estimate represents a year-over-year growth of 1.3%.
The stock currently carries a Zacks Rank #3 and has an Earnings ESP of +3.85%. Therefore, chances of the company surpassing the Zacks Consensus Estimate this time are high.
Notably, the company witnessed an average positive surprise of 2.1% in the trailing four quarters as depicted in the chart below:
The Zacks Consensus Estimate of Bank of Hawaii Corporation (BOH - Free Report) , which is also slated to report results before the opening bell, remained stable in the last 30 days. Its estimate of $1.07 per share represents a year-over-year decline of 8.1%.
Despite the stock currently carrying a Zacks Rank #2 (Buy), chances of beating the Zacks Consensus Estimate are low because it has an Earnings ESP of -4.67%.
The company witnessed an average positive surprise of 7.2% in the trailing four quarters as depicted in the chart below:
Chances of Heartland Financial USA, Inc. (HTLF - Free Report) beating the Zacks Consensus Estimate in the to-be-reported quarter are also low. This is because it has an Earnings ESP of -2.90% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The company is slated to report results after the market closes.
Nonetheless, its Zacks Consensus Estimate of 69 cents has increased 1.5% in the last 30 days. However, it represents year-over-year decline of 16.2%.
Notably, the company surpassed the Zacks Consensus Estimate in three of the trailing four quarters, as depicted in the chart below:
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