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Regional banking company Customers Bancorp (NYSE: CUBI) will be reporting results tomorrow afternoon. Here’s what to look for.
Customers Bancorp beat analysts’ revenue expectations by 6.9% last quarter, reporting revenues of $231.8 million, up 38.3% year on year. It was a stunning quarter for the company, with an impressive beat of analysts’ net interest income estimates and a solid beat of analysts’ revenue estimates.
This quarter, analysts are expecting Customers Bancorp’s revenue to grow 19.6% year on year to $231.3 million, improving from the 1.1% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.04 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. Customers Bancorp has missed Wall Street’s revenue estimates twice over the last two years.
Looking at Customers Bancorp’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%.
Investors in the regional banks segment have had steady hands going into earnings, with share prices flat over the last month. Customers Bancorp is down 1.3% during the same time and is heading into earnings with an average analyst price target of $87 (compared to the current share price of $75.38).
