Regional banking company Enterprise Financial Services (NASDAQ: EFSC) will be announcing earnings results this Wednesday afternoon. Here’s what investors should know.
Enterprise Financial Services missed analysts’ revenue expectations last quarter, reporting revenues of $187.4 million, up 6.4% year on year. It was a softer quarter for the company, with a significant miss of analysts’ EPS estimates and tangible book value per share in line with analysts’ estimates.
Is Enterprise Financial Services 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 Enterprise Financial Services’s revenue to grow 8.5% year on year, in line with the 8.6% 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. Enterprise Financial Services rarely misses Wall Street’s revenue estimates.
Looking at Enterprise Financial Services’s peers in the regional banks segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Washington Trust Bancorp delivered year-on-year revenue growth of 15%, beating analysts’ expectations by 4.1%, and Independent Bank reported revenues up 7.4%, topping estimates by 0.6%. Independent Bank traded up 3.6% following the results.
Read our full analysis of Washington Trust Bancorp’s results here and Independent Bank’s results here.
In the last year or so, investors have shifted their focus from one macro dynamic to the next (AI disintermediation and AI investment to geopolitical conflict, interest rates, and the health of the wider economy). While some of the regional banks stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 5.7% on average over the last month. Enterprise Financial Services is down 2.6% during the same time and is heading into earnings with an average analyst price target of $71 (compared to the current share price of $59.38).
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