Regional banking company Eastern Bankshares (NASDAQ: EBC) will be reporting earnings tomorrow afternoon. Here’s what you need to know.
Eastern Bank missed analysts’ revenue expectations by 0.5% last quarter, reporting revenues of $245 million, up 16% year on year. It was a softer quarter for the company, with a significant miss of analysts’ net interest income estimates and a significant miss of analysts’ EPS estimates.
Is Eastern Bank a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Eastern Bank’s revenue to grow 29% year on year to $284.9 million, slowing from the 38.4% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.41 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Eastern Bank has missed Wall Street’s revenue estimates three times over the last two years.
Looking at Eastern Bank’s peers in the regional banks segment, some have already reported their Q4 results, giving us a hint as to what we can expect. ServisFirst Bancshares delivered year-on-year revenue growth of 22.9%, beating analysts’ expectations by 6.8%, and Simmons First National reported revenues up 17.2%, topping estimates by 5.3%.
Read our full analysis of ServisFirst Bancshares’s results here and Simmons First National’s results here.
Investors in the regional banks segment have had steady hands going into earnings, with share prices flat over the last month. Eastern Bank is up 2.2% during the same time and is heading into earnings with an average analyst price target of $22.42 (compared to the current share price of $19.16).
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