Analysts predict strong earnings growth for Columbia Banking in Q4, despite slight revenue decline
Seattle: Wall Street is buzzing about Columbia Banking (COLB) as they gear up for their quarterly earnings report. Analysts are expecting earnings of $0.65 per share, which is a solid jump of 47.7% from last year. However, revenues are projected to dip slightly to $491.6 million, down 5.3% from the same quarter last year.
In the last month, analysts have slightly adjusted their earnings estimates upward by 0.4%. This shows that they’re feeling a bit more optimistic about how the company is doing. It’s always interesting to see how these estimates change as the earnings date approaches.
When a company is about to release its earnings, it’s important to pay attention to these estimate changes. They can really influence how investors react to the stock. Studies have shown that there’s often a strong link between these revisions and how the stock performs in the short term.
Investors usually look at the consensus earnings and revenue estimates to get a sense of how the company has been doing. But digging into the key metrics that analysts are tracking can give a clearer picture of what’s happening.
For Columbia Banking, analysts are estimating that the average balance of total interest-earning assets will hit $48.46 billion, up from $47.84 billion last year. That’s a good sign!
They also expect the efficiency ratio to improve to 53.8%, a nice drop from last year’s 64.8%. This means the bank is getting better at managing its expenses relative to its income.
As for the net interest margin, analysts predict it will be around 3.6%, down from 3.8% last year. It’s a small decline, but still something to keep an eye on.
Looking at non-performing loans and leases, the estimate is $149.31 million, which is higher than last year’s $112.90 million. Similarly, total non-performing assets are expected to reach $174.59 million, up from $113.94 million last year.
On the income side, analysts think total noninterest income will be about $59 million, down from $65.53 million last year. Meanwhile, net interest income is projected to be $432.64 million, compared to $453.62 million last year.
For financial services and trust revenue, the estimate is $5.30 million, which is a nice increase from $3.01 million last year. Service charges on deposits are expected to rise to $18.90 million, up from $17.35 million last year.
Overall, Columbia Banking shares have done well recently, gaining 6.6% over the past month, while the S&P 500 has dipped by 2.1%. With a Zacks Rank of #3 (Hold), it looks like COLB will perform in line with the market.
