Regional banking company Customers Bancorp (NYSE:CUBI) will be reporting results this Thursday afternoon. Here’s what to look for.
Customers Bancorp missed analysts’ revenue expectations last quarter, reporting revenues of $227.3 million, up 9.9% year on year. It was a softer quarter for the company, with a miss of analysts’ net interest income estimates and a narrow beat of analysts’ EPS estimates.
Is Customers Bancorp 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 Customers Bancorp’s revenue to grow 2.1% year on year, slowing from the 38.3% 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. Customers Bancorp has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Customers Bancorp’s peers in the regional banks segment, some have already reported their Q3 results, giving us a hint as to what we can expect. QCR Holdings’s revenues decreased 11.7% year on year, missing analysts’ expectations by 8.9%, and Washington Trust Bancorp reported revenues up 15%, topping estimates by 4.1%. Washington Trust Bancorp traded up 4.2% following the results.
Read our full analysis of QCR Holdings’s results here and Washington Trust Bancorp’s results here.
In the last twelve months or so, the market has shifted its attention from one area of macro importance to the next (AI disintermediation and AI capex spending to geopolitical conflict, rates, and whether the economy is on solid footing or not). While some of the regional banks stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 3% on average over the last month. Customers Bancorp is down 3.6% during the same time and is heading into earnings with an average analyst price target of $93.55 (compared to the current share price of $76).
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