Popular Second Quarter Earnings Sneak Peek

Popular, Inc. (NASDAQ:BPOP) will unveil its latest earnings on Wednesday, July 18, 2012. Popular is a publicly owned bank holding company that offers retail and commercial banking services through its main banking subsidiary, Banco Popular de Puerto Rico.

Popular, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for profit of 41 cents per share, a decline of 41.4% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from 45 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 41 cents during the last month. Analysts are projecting profit to rise by 74.5% compared to last year’s $1.92.

Past Earnings Performance: Last quarter, the company topped expectations by 20 cents, coming in at net income of 50 cents per share versus a mean estimate of profit of 30 cents per share. This followed two straight quarters of missing estimates.

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Stock Price Performance: Between May 15, 2012 and July 12, 2012, the stock price had risen $14.01 (909.7%), from $1.54 to $15.55. It saw one of its worst periods between November 11, 2011 and November 21, 2011 when shares fell for seven straight days, dropping 17.1% (-29 cents) over that span. The stock price saw one of its best stretches over the last year between March 6, 2012 and March 19, 2012, when shares rose for 10 straight days, increasing 27.4% (+49 cents) over that span.

A Look Back: In the first quarter, profit rose more than fourfold to $48.4 million (5 cents a share) from $10.1 million (one cent a share) the year earlier, exceeding analyst expectations. Revenue fell 13.2% to $563.8 million from $649.8 million.

Wall St. Revenue Expectations: On average, analysts predict $446.9 million in revenue this quarter, a decline of 10.4% from the year-ago quarter. Analysts are forecasting total revenue of $1.81 billion for the year, a decline of 9% from last year’s revenue of $1.99 billion.

Key Stats:

On the top line, the company is hoping to use this earnings announcement to snap a string of four-straight quarters of revenue decreases. Revenue fell 6.2% in the second quarter of the last fiscal year, 54.4% in third quarter of the last fiscal year and 4.6% in the fourth quarter of the last fiscal year and then fell again in the first quarter.

Analyst Ratings: There are three out of five analysts surveyed (60%) rating Popular a buy.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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