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What Analyst Projections for Key Metrics Reveal About Western Alliance (WAL) Q4 Earnings

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Wall Street analysts forecast that Western Alliance (WAL - Free Report) will report quarterly earnings of $2.40 per share in its upcoming release, pointing to a year-over-year increase of 23.1%. It is anticipated that revenues will amount to $927.5 million, exhibiting an increase of 9.3% compared to the year-ago quarter.

The consensus EPS estimate for the quarter has been revised 1% lower over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.

Ahead of a company's earnings disclosure, it is crucial to give due consideration to changes in earnings estimates. These revisions serve as a noteworthy factor in predicting potential investor reactions to the stock. Numerous empirical studies consistently demonstrate a strong relationship between trends in earnings estimate revision and the short-term price performance of a stock.

While investors usually depend on consensus earnings and revenue estimates to assess the business performance for the quarter, delving into analysts' forecasts for certain key metrics often provides a more comprehensive understanding.

That said, let's delve into the average estimates of some Western Alliance metrics that Wall Street analysts commonly model and monitor.

The consensus estimate for 'Net Interest Margin' stands at 3.4%. Compared to the current estimate, the company reported 3.5% in the same quarter of the previous year.

Based on the collective assessment of analysts, 'Efficiency Ratio' should arrive at 54.9%. The estimate is in contrast to the year-ago figure of 51.1%.

Analysts' assessment points toward 'Tier 1 Leverage Ratio' reaching 8.4%. The estimate is in contrast to the year-ago figure of 8.1%.

The collective assessment of analysts points to an estimated 'Average Balance - Total interest earning assets' of $85.84 billion. The estimate compares to the year-ago value of $77.31 billion.

The combined assessment of analysts suggests that 'Total non-interest income' will likely reach $169.03 million. The estimate is in contrast to the year-ago figure of $171.90 million.

Analysts expect 'Net interest income' to come in at $759.35 million. The estimate is in contrast to the year-ago figure of $666.50 million.

Analysts forecast 'Net gain on loan origination and sale activities' to reach $70.66 million. The estimate is in contrast to the year-ago figure of $67.90 million.

The consensus among analysts is that 'Service charges and fees' will reach $36.64 million. The estimate is in contrast to the year-ago figure of $31.70 million.

According to the collective judgment of analysts, 'Net loan servicing revenue' should come in at $18.63 million. The estimate compares to the year-ago value of $24.70 million.

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

Shares of Western Alliance have demonstrated returns of -1% over the past month compared to the Zacks S&P 500 composite's -0.4% change. 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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