Analysts predict a decline in Webster Financial’s Q4 earnings, with key metrics showing mixed results compared to last year.
Waterbury: Analysts are keeping a close eye on Webster Financial’s upcoming earnings report. They expect the company to announce earnings of $1.36 per share, which is a drop of about 6.9% from last year. Revenue is projected to hit around $685.95 million, marking an 8.1% increase from the same quarter last year.
Interestingly, the earnings per share estimate hasn’t changed in the last month. This suggests that analysts are sticking to their guns about their predictions.
Before earnings are released, it’s crucial to consider any changes in projections. These adjustments can really help predict how investors might react to the stock. Studies show a strong connection between earnings estimate revisions and short-term stock performance.
While many investors look at consensus earnings and revenue estimates, digging into specific metrics can give a clearer picture of how the business is doing.
So, let’s break down what analysts are forecasting for Webster Financial. They expect the ‘Net Interest Margin’ to be around 3.3%, slightly down from 3.4% last year.
For the ‘Efficiency Ratio,’ analysts are predicting it will be 48.1%, which is higher than the 43% reported a year ago.
They also estimate that the ‘Average balance – Total interest-earning assets’ will reach $71.52 billion, up from $66.57 billion last year.
On the downside, ‘Total nonperforming loans and leases’ are expected to rise to $443.36 million, compared to $209.54 million last year.
In terms of ‘Total Non-Interest Income,’ analysts forecast it to be $88.53 million, up from $63.82 million in the same quarter last year.
For ‘Net Interest Income,’ the estimate is $598.29 million, compared to $571.02 million last year.
Analysts also predict ‘Wealth and investment services’ will come in at $8.71 million, up from $7.77 million last year.
As for ‘Loan and lease related fees,’ they expect it to be $18.69 million, down from $21.36 million last year.
‘Deposit service fees’ are estimated at $39.64 million, slightly up from $37.46 million last year.
For ‘Increase in cash surrender value of life insurance policies,’ the estimate stands at $7.78 million, compared to $6.59 million last year.
Lastly, ‘Non-interest income- Other income’ is expected to be $14.32 million, up from $6.46 million last year.
Analysts also expect ‘Tax-equivalent Net Interest Income’ to be around $610.95 million, compared to $588.85 million last year.
Shares of Webster Financial have dipped by 7.1% over the past month, while the Zacks S&P 500 composite has seen a smaller decline of 3.5%. With a Zacks Rank of #3 (Hold), WBS is likely to follow the overall market trend in the near future.
