Regional banking company Eastern Bankshares (NASDAQ: EBC) will be announcing earnings results this Thursday after market close. Here’s what to expect.
Eastern Bank missed analysts’ revenue expectations last quarter, reporting revenues of $295.9 million, up 30% 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, the market is expecting Eastern Bank’s revenue to grow 23.4% year on year, slowing from the 50% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Eastern Bank has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Eastern Bank’s peers in the regional banks segment, some have already reported their Q2 results, giving us a hint as to what we can expect. OFG Bancorp delivered year-on-year revenue growth of 4.5%, beating analysts’ expectations by 3.9%, and BOK Financial reported revenues up 10.1%, topping estimates by 2.8%. BOK Financial’s stock price was unchanged following the results.
Read our full analysis of OFG Bancorp’s results here and BOK Financial’s results here.
There has been positive sentiment among investors in the regional banks segment, with share prices up 4.8% on average over the last month. Eastern Bank is up 10.6% during the same time and is heading into earnings with an average analyst price target of $23.94 (compared to the current share price of $22.93).
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