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Western Alliance (WAL) Q2 Earnings on the Horizon: Analysts' Insights on Key Performance Measures

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In its upcoming report, Western Alliance (WAL - Free Report) is predicted by Wall Street analysts to post quarterly earnings of $2.02 per share, reflecting an increase of 15.4% compared to the same period last year. Revenues are forecasted to be $848.1 million, representing a year-over-year increase of 8.5%.

Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted downward by 1.3% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.

Prior to a company's earnings release, it is of utmost importance to factor in any revisions made to the earnings projections. These revisions serve as a critical gauge for predicting potential investor behaviors with respect to the stock. Empirical studies consistently reveal a strong link between trends in earnings estimate revisions and the short-term price performance of a stock.

While investors typically use consensus earnings and revenue estimates as a yardstick to evaluate the company's quarterly performance, scrutinizing analysts' projections for some of the company's key metrics can offer a more comprehensive perspective.

Bearing this in mind, let's now explore the average estimates of specific Western Alliance metrics that are commonly monitored and projected by Wall Street analysts.

The average prediction of analysts places 'Net Interest Margin' at 3.4%. Compared to the present estimate, the company reported 3.6% in the same quarter last year.

The collective assessment of analysts points to an estimated 'Efficiency Ratio' of 58.5%. Compared to the current estimate, the company reported 62.3% in the same quarter of the previous year.

Analysts forecast 'Average Balance - Total interest earning assets' to reach $79.16 billion. The estimate compares to the year-ago value of $73.87 billion.

Analysts predict that the 'Total non-interest income' will reach $138.64 million. Compared to the present estimate, the company reported $115.20 million in the same quarter last year.

Analysts expect 'Service charges and fees' to come in at $39.00 million. The estimate is in contrast to the year-ago figure of $10.80 million.

The consensus among analysts is that 'Net interest income' will reach $689.27 million. Compared to the current estimate, the company reported $656.60 million in the same quarter of the previous year.

The combined assessment of analysts suggests that 'Net gain on loan origination and sale activities' will likely reach $59.48 million. The estimate is in contrast to the year-ago figure of $46.80 million.

It is projected by analysts that the 'Other non-interest income' will reach $15.06 million. The estimate compares to the year-ago value of $8.10 million.

According to the collective judgment of analysts, 'Net loan servicing revenue' should come in at $24.72 million. The estimate is in contrast to the year-ago figure of $38.10 million.

View all Key Company Metrics for Western Alliance here>>>

Shares of Western Alliance have experienced a change of +18.5% in the past month compared to the +4% move of the Zacks S&P 500 composite. With a Zacks Rank #3 (Hold), WAL is expected to mirror the overall market performance in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .


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