Puerto Rican financial institution Popular (NASDAQ: BPOP) will be reporting earnings this Thursday before the bell. Here’s what investors should know.
Popular met analysts’ revenue expectations last quarter, reporting revenues of $836 million, up 10.2% year on year. It was a strong quarter for the company, with a beat of analysts’ EPS estimates and a solid beat of analysts’ net interest income estimates.
Is Popular 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 Popular’s revenue to grow 8.7% year on year, in line with the 8.4% 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. Popular has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Popular’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. Popular is up 5.8% during the same time and is heading into earnings with an average analyst price target of $186.20 (compared to the current share price of $172.15).
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