We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Loan Growth to Support First Republic's (FRC) Q1 Earnings
Read MoreHide Full Article
First Republic Bank is scheduled to report first-quarter 2019 earnings, before the opening bell on Apr 15. Its revenues and earnings are expected to grow year over year.
The company’s fourth-quarter earnings surpassed the Zacks Consensus Estimate on higher revenues. However, rise in provisions and expenses were headwinds.
Notably, First Republic has an impressive earnings surprise history. Its earnings surpassed the consensus estimate in three of the trailing four quarters, the average beat being 3.5%.
Now let’s take a look at what our quantitative model predicts for the to-be-reported quarter:
Our proven model shows that First Republic has the right combination of the two key ingredients — positive Earnings ESP and a Zacks Rank #3 (Hold) or better — to increase the odds of an earnings beat.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: The Earnings ESP for First Republic is +1.27%.
Zacks Rank: The company currently carries a Zacks Rank of 3.
Though estimates for the to-be-reported quarter have been revised slightly downward over the last seven days, the Zacks Consensus Estimate for earnings of $1.22 reflects growth of 8% year over year.
Also, the consensus estimate for sales of $814 million indicates an increase of 12.9%.
Here are the factors influencing First Republic’s first-quarter results:
Net Interest Income (NII) to Rise: Per the Fed’s latest data, Commercial and Industrial and consumer lending activities showed modest growth in the first quarter, thereby benefitting NII. Also, full quarter benefit of December 2018 rate hike is likely to support expansion of net interest margin.
Non-Interest Revenues to Disappoint: Investment banking is expected to display a disappointing performance due to a considerable reduction in equity underwriting volumes globally on trade-war fears, government shutdown in January and expectations of global economic slowdown.
Further, rise in interest rates is likely to have slowed down companies’ involvement in debt issuance activities. Also, decline in global M&A deal volume and value in the first quarter will likely hamper related fees to some extent.
Also, decline in global M&A deal volume in the first quarter will likely hamper the company’s advisory fees to some extent.
Expenses Might Rise: First Republic’s investments in digital initiatives, including mobile banking applications and data analytics are likely to keep costs elevated in this quarter as well. Also, management expects costs to rise in mid-teens in the first quarter.
Other Stocks That Warrant a Look
Here are some other stocks you may want to consider, as according to our model these too have the right combination of elements to post an earnings beat this quarter.
The Bank of New York Mellon Corporation (BK - Free Report) is scheduled to release results on Apr 17. The company, which carries a Zacks Rank of 3, has an Earnings ESP of +0.17%.
The Earnings ESP for BankUnited, Inc. (BKU - Free Report) is +1.89% and it carries a Zacks Rank of 3. The company is scheduled to report quarterly numbers on Apr 24.
Zacks' Top 10 Stocks for 2019
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-holds for the year?
Who wouldn't? Our annual Top 10s have beaten the market with amazing regularity. In 2018, while the market dropped -5.2%, the portfolio scored well into double-digits overall with individual stocks rising as high as +61.5%. And from 2012-2017, while the market boomed +126.3, Zacks' Top 10s reached an even more sensational +181.9%.
Image: Bigstock
Loan Growth to Support First Republic's (FRC) Q1 Earnings
First Republic Bank is scheduled to report first-quarter 2019 earnings, before the opening bell on Apr 15. Its revenues and earnings are expected to grow year over year.
The company’s fourth-quarter earnings surpassed the Zacks Consensus Estimate on higher revenues. However, rise in provisions and expenses were headwinds.
Notably, First Republic has an impressive earnings surprise history. Its earnings surpassed the consensus estimate in three of the trailing four quarters, the average beat being 3.5%.
First Republic Bank Price and EPS Surprise
First Republic Bank Price and EPS Surprise | First Republic Bank Quote
Now let’s take a look at what our quantitative model predicts for the to-be-reported quarter:
Our proven model shows that First Republic has the right combination of the two key ingredients — positive Earnings ESP and a Zacks Rank #3 (Hold) or better — to increase the odds of an earnings beat.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: The Earnings ESP for First Republic is +1.27%.
Zacks Rank: The company currently carries a Zacks Rank of 3.
Though estimates for the to-be-reported quarter have been revised slightly downward over the last seven days, the Zacks Consensus Estimate for earnings of $1.22 reflects growth of 8% year over year.
Also, the consensus estimate for sales of $814 million indicates an increase of 12.9%.
Here are the factors influencing First Republic’s first-quarter results:
Net Interest Income (NII) to Rise: Per the Fed’s latest data, Commercial and Industrial and consumer lending activities showed modest growth in the first quarter, thereby benefitting NII. Also, full quarter benefit of December 2018 rate hike is likely to support expansion of net interest margin.
Non-Interest Revenues to Disappoint: Investment banking is expected to display a disappointing performance due to a considerable reduction in equity underwriting volumes globally on trade-war fears, government shutdown in January and expectations of global economic slowdown.
Further, rise in interest rates is likely to have slowed down companies’ involvement in debt issuance activities. Also, decline in global M&A deal volume and value in the first quarter will likely hamper related fees to some extent.
Also, decline in global M&A deal volume in the first quarter will likely hamper the company’s advisory fees to some extent.
Expenses Might Rise: First Republic’s investments in digital initiatives, including mobile banking applications and data analytics are likely to keep costs elevated in this quarter as well. Also, management expects costs to rise in mid-teens in the first quarter.
Other Stocks That Warrant a Look
Here are some other stocks you may want to consider, as according to our model these too have the right combination of elements to post an earnings beat this quarter.
Comerica Incorporated (CMA - Free Report) is scheduled to release results on Apr 16. It has an Earnings ESP of +0.52% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Bank of New York Mellon Corporation (BK - Free Report) is scheduled to release results on Apr 17. The company, which carries a Zacks Rank of 3, has an Earnings ESP of +0.17%.
The Earnings ESP for BankUnited, Inc. (BKU - Free Report) is +1.89% and it carries a Zacks Rank of 3. The company is scheduled to report quarterly numbers on Apr 24.
Zacks' Top 10 Stocks for 2019
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-holds for the year?
Who wouldn't? Our annual Top 10s have beaten the market with amazing regularity. In 2018, while the market dropped -5.2%, the portfolio scored well into double-digits overall with individual stocks rising as high as +61.5%. And from 2012-2017, while the market boomed +126.3, Zacks' Top 10s reached an even more sensational +181.9%.
See Latest Stocks Today >>