Popular Third Quarter Earnings Sneak Peek

Popular, Inc. (NASDAQ:BPOP) will unveil its latest earnings on Friday, October 19, 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 estimate of analysts is for profit of 50 cents per share, a rise of 66.7% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from 48 cents. Between one and three months ago, the average estimate moved up. It has risen from 49 cents during the last month. Analysts are projecting profit to rise by 87.3% versus last year to $2.06.

Past Earnings Performance: The company is looking to beat analyst estimates for the third quarter in a row. Last quarter, it beat estimates with net income of 63 cents per share against the mean estimate of 41 cents. In the prior quarter, the company reported profit of 50 cents.

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A Look Back: In the second quarter, profit fell 40.6% to $65.7 million (63 cents a share) from $110.7 million (11 cents a share) the year earlier, but exceeded analyst expectations. Revenue fell 15.4% to $533.8 million from $631.1 million.

Stock Price Performance: Between July 20, 2012 and October 15, 2012, the stock price rose $5.21 (37.7%), from $13.85 to $19.06. 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.

Wall St. Revenue Expectations: Analysts predict a decline of 6.8% in revenue from the year-earlier quarter to $458.3 million.

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 54.4% in the third quarter of the last fiscal year, 4.6% in fourth quarter of the last fiscal year and 13.2% in the first quarter and then fell again in the second quarter.

Analyst Ratings: With four analysts rating the stock a buy, none rating it a sell and one rating the stock a hold, there are indications of a bullish stance by analysts. Over the past 90 days, the average rating for the stock has moved up from hold to moderate buy.

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

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