Texas-based financial institution Cullen/Frost Bankers (NYSE:CFR) will be reporting results this Thursday before market open. Here’s what you need to know.
Frost Bank met analysts’ revenue expectations last quarter, reporting revenues of $567.3 million, up 9.5% year on year. It was a very strong quarter for the company, with a solid beat of analysts’ tangible book value per share estimates and an impressive beat of analysts’ net interest income estimates.
Is Frost Bank a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Frost Bank’s revenue to grow 8.2% year on year to $580.6 million, improving from the 6.9% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.45 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Frost Bank has missed Wall Street’s revenue estimates six times over the last two years.
Looking at Frost Bank’s peers in the regional banks segment, some have already reported their Q4 results, giving us a hint as to what we can expect. UMB Financial delivered year-on-year revenue growth of 66%, beating analysts’ expectations by 6%, and WSFS Financial reported revenues up 6.2%, topping estimates by 4.1%. WSFS Financial traded up 6.5% following the results.
Read our full analysis of UMB Financial’s results here and WSFS Financial’s results here.
There has been positive sentiment among investors in the regional banks segment, with share prices up 3.4% on average over the last month. Frost Bank is up 5.3% during the same time and is heading into earnings with an average analyst price target of $138.27 (compared to the current share price of $135.56).
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