Financial services company Pathward Financial (NASDAQ: CASH) will be reporting results this Wednesday afternoon. Here’s what investors should know.
Pathward Financial missed analysts’ revenue expectations last quarter, reporting revenues of $173.2 million, flat year on year. It was a slower quarter for the company, with a significant miss of analysts’ revenue estimates and a significant miss of analysts’ net interest income estimates.
Is Pathward Financial 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 Pathward Financial’s revenue to decline 3.2% year on year, a reversal from the 10.8% 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 to stay the course heading into earnings. Pathward Financial has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Pathward Financial’s peers in the regional banks segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Wintrust Financial delivered year-on-year revenue growth of 11.4%, beating analysts’ expectations by 1.2%, and BancFirst reported revenues up 7.8%, topping estimates by 1%. BancFirst traded up 3.6% following the results.
Read our full analysis of Wintrust Financial’s results here and BancFirst’s results here.
There has been positive sentiment among investors in the regional banks segment, with share prices up 10.2% on average over the last month. Pathward Financial is up 9.4% during the same time and is heading into earnings with an average analyst price target of $103.50 (compared to the current share price of $99.86).
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