Texas-based financial institution Cullen/Frost Bankers (NYSE:CFR) will be reporting earnings this Thursday morning. Here’s what to expect.
Frost Bank missed analysts’ revenue expectations by 1.1% last quarter, reporting revenues of $540.2 million, up 7.7% year on year. It was a slower quarter for the company, with a significant miss of analysts’ net interest income estimates.
Is Frost Bank a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Frost Bank’s revenue to grow 7.1% year on year to $543.9 million, improving from the 3.9% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.31 per share.
Heading into earnings, analysts covering the company have grown increasingly bullish with revenue estimates seeing 3 upward revisions over the last 30 days (we track 7 analysts). Frost Bank has missed Wall Street’s revenue estimates twice over the last two years.
Looking at Frost Bank’s peers in the regional banks segment, some have already reported their Q2 results, giving us a hint as to what we can expect. UMB Financial delivered year-on-year revenue growth of 76.7%, beating analysts’ expectations by 8.6%, and Seacoast Banking reported revenues up 19.6%, topping estimates by 5%. Seacoast Banking’s stock price was unchanged following the results.
Read our full analysis of UMB Financial’s results here and Seacoast Banking’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 5.1% during the same time and is heading into earnings with an average analyst price target of $135.46 (compared to the current share price of $135.06).
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