Texas-based commercial bank Stellar Bancorp (NYSE: STEL) will be reporting earnings this Friday before market hours. Here’s what investors should know.
Stellar Bancorp missed analysts’ revenue expectations by 1% last quarter, reporting revenues of $104.8 million, down 3.4% year on year. It was a slower quarter for the company, with a slight miss of analysts’ net interest income estimates and EPS in line with analysts’ estimates.
Is Stellar Bancorp a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Stellar Bancorp’s revenue to decline 1.8% year on year to $104.9 million, improving from the 6.1% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.45 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Stellar Bancorp has missed Wall Street’s revenue estimates twice over the last two years.
Looking at Stellar Bancorp’s peers in the regional banks segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Popular delivered year-on-year revenue growth of 8.9%, beating analysts’ expectations by 3.5%, and City Holding reported revenues up 6.3%, topping estimates by 3%. City Holding traded up 7.5% following the results.
Read our full analysis of Popular’s results here and City Holding’s results here.
There has been positive sentiment among investors in the regional banks segment, with share prices up 7.3% on average over the last month. Stellar Bancorp is up 14.8% during the same time and is heading into earnings with an average analyst price target of $28.60 (compared to the current share price of $32.11).
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