Western Alliance Bancorp Fourth Quarter Earnings Sneak Peek

Western Alliance Bancorporation (NYSE:WAL) will unveil its latest earnings tomorrow, Thursday, January 24, 2013. 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 analyst estimate is for net income of 22 cents per share, a rise of more than threefold from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved up from 19 cents. Between one and three months ago, the average estimate moved up. It has been unchanged at 22 cents during the last month. For the year, analysts are projecting profit of 68 cents per share, a rise of more than threefold from last year.

Past Earnings Performance: The company has beaten estimates the last two quarters and is coming off a quarter where it topped the forecasts by 7 cents, reporting net income of 24 cents per share against a mean estimate of profit of 17 cents. In the second quarter, the company exceeded forecasts by 3 cents with net income of 16 cents versus a mean estimate of profit of 13 cents.

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A Look Back: In the third quarter, profit rose 18.8% to $15.5 million (18 cents a share) from $13 million (4 cents a share) the year earlier, exceeding analyst expectations. Revenue fell 1.8% to $85.7 million from $87.2 million.

Here’s how Western Alliance Bancorp traded following its last earnings report 3 months ago and leading up to its upcoming earnings report this week:


Stock Price Performance: Between November 19, 2012 and January 17, 2013, the stock price had risen $1.68 (17.1%), from $9.81 to $11.49. It saw one of its worst periods between July 17, 2012 and July 25, 2012 when shares fell for seven straight days, dropping 6.3% (-60 cents) over that span. The stock price saw one of its best stretches over the last year between June 25, 2012 and July 3, 2012, when shares rose for seven straight days, increasing 11.8% (+$1) over that span.

Wall St. Revenue Expectations: Analysts predict a rise of 12.6% in revenue from the year-earlier quarter to $82.9 million.

Key Stats:

On the top line, the company is looking to get back on the right track after last quarter’s drop snapped a string of revenue increases. Revenue rose 14.1% in the fourth quarter of the last fiscal year, 5.7% in the first quarter and 2.1%in the second quarter before dropping in the third quarter.

Analyst Ratings: With five analysts rating the stock as a buy, none rating it as a sell and five rating it as a hold, there are indications of a bullish outlook.

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