Western Alliance Bancorp Fourth Quarter Earnings Preview

Western Alliance Bancorporation (NYSE:WAL) will unveil its latest earnings on Thursday, January 19, 2012. Western Alliance Bancorporation, through its subsidiary banks, provides a range of banking and related services to businesses, professional firms, real estate developers and investors, local nonprofit organizations, high net worth individuals, and consumers.

Western Alliance Bancorporation Earnings Preview Cheat Sheet.

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 9 cents per share, a swing from a loss of 15 cents in the year earlier quarter. The average estimate is the same as three months ago. Between one and three months ago, the average estimate was unchanged. It also has not changed during the last month. Analysts are projecting net income of 22 cents per share versus net loss of 22 cents last year.

Past Earnings Performance: Last quarter, the company saw profit of 6 cents per share versus a mean estimate of net income of 6 cents per share. This comes after two consecutive quarters of exceeding expectations.

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Wall St. Revenue Expectations: On average, analysts predict $71.8 million in revenue this quarter, a rise of 19.2% from the year ago quarter. Analysts are forecasting total revenue of $281.8 million for the year, a rise of 0.9% from last year’s revenue of $279.4 million.

Analyst Ratings: Analysts are bullish on Western Alliance as six analysts rate it as a buy, none rate it as a sell and six rate it as a hold.

A Look Back: In the third quarter, profit rose more than sixfold to $13 million (4 cents a share) from $2 million (-1 cents a share) the year earlier, meeting analyst expectations. Revenue rose 5.2% to $87.2 million from $82.9 million.

Key Stats:

A year-over-year revenue increase in the third quarter snapped a streak of two consecutive quarters of revenue declines. Revenue fell 9.1% in the second quarter and 5.6% in the first quarter.

Competitors to Watch: Guaranty Bancorp (NASDAQ:GBNK), Zions Bancorporation (NASDAQ:ZION), People’s United Financial, Inc. (NASDAQ:PBCT), Wells Fargo & Company (NYSE:WFC), First State Bancorp., NM (FSNM), CoBiz Financial Inc (NASDAQ:COBZ), Heritage Oaks Bancorp (NASDAQ:HEOP), and Wilshire Bancorp, Inc. (NASDAQ:WIBC).

Stock Price Performance: During December 14, 2011 to January 13, 2012, the stock price had risen $1.68 (29.5%) from $5.70 to $7.38. The stock price saw one of its best stretches over the last year between September 9, 2011 and September 16, 2011 when shares rose for six-straight days, rising 9.2% (+48 cents) over that span. It saw one of its worst periods between May 31, 2011 and June 8, 2011 when shares fell for seven-straight days, falling 9.1% (-67 cents) over that span.

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

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