Westamerica (WABC) Q4 Earnings Match Estimates
In line with the Zacks Consensus Expected, Westamerica (WABC), posted quarterly earnings at $1.46 per share. This is compared to the earnings of $0.81 a year earlier. These figures include non-recurring expenses.
Quarterly, earnings were expected to be posted by this holding company for Westamerica Bank at $1.02 per share. However, earnings actually reached $1.29 per share, which was unexpected at 26.47%.
The company’s consensus EPS estimates have been exceeded three times in the past four quarters.
Westamerica – a Zacks Banks industry, saw revenues of $79.19million for the quarter that ended December 2022. This is more than the Zacks Consensus Estimate of 0.69%. This compares with the year-ago revenues which were $53.38million. In the four most recent quarters, consensus revenue estimates have been exceeded four times.
The stock’s sustainability will be determined based on the recent earnings numbers. Future earnings expectations will also depend on management comments during the earnings call.
Westamerica shares have lost about 4.6% since the beginning of the year versus the S&P 500’s gain of 2.3%.
What’s next for Westamerica?
Although Westamerica has outperformed the market this year, investors are left wondering: What’s the next step for the stock?
While there are no simple answers to this crucial question, investors can look at the earnings outlook of the company. This includes the current consensus earnings outlook for the upcoming quarter(s), and how these expectations have changed recently.
Empirical research has shown a strong correlation between near term stock movements and trends of earnings estimate revisions. Investors have two options: track these revisions on their own or rely upon a proven rating tool such as the Zacks Rank. This tool has a strong track record in harnessing the power earnings estimate revisions.
This earnings report will reveal the Westamerica trend in estimate revisions: mixed. The company’s earnings report could have an impact on the direction and magnitude of the estimate revisions, but the current Zacks rank for the stock is #3 (Hold). In the short term, the stock is expected to perform in line the market. Here is the complete Zacks #1 rank (Strong Buy), stock list.
It will be interesting, in the days to come, to see how estimates change for the next quarters as well as the current fiscal years. Current consensus EPS estimates are $1.58 for $83.68 million in revenue for the next quarter and $6.35 for $335.47 millions for the current fiscal.
Investors should consider the possibility that the outlook in the industry could have a significant impact on the stock’s performance. Banks – West is currently at the bottom 33% of all 250+ Zacks industry ranked. Our research has shown that the top 50% Zacks-ranked businesses outperforms the bottom 50% by more than 2 to 1.
Umpqua Holdings, another stock in the same industry (UMPQ), has not yet reported results for the quarter ending December 2022. Expected release of the results is January 23.
In its next report, the regional bank expects to post quarterly earnings at $0.52 per share. This represents a +26.8% year-over–year increase. The consensus EPS estimate for this quarter has been reduced by 5.4% over the past 30 day to the current level.
Umpqua Holdings revenues are forecast to reach $350.2 million in the fourth quarter of 2018, an increase of 10.8% over the previous year.
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Westamerica Bancorporation (WABC) : Free Stock Analysis Report
Umpqua Holdings Corporation (UMPQ) : Free Stock Analysis Report