Texas-based financial institution Cullen/Frost Bankers (NYSE: CFR) will be reporting results this Thursday before market hours. Here’s what to look for.
Frost Bank met analysts’ revenue expectations last quarter, reporting revenues of $581.7 million, up 8.4% year on year. It was a satisfactory quarter for the company, with an impressive beat of analysts’ tangible book value per share estimates but 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 for active Edge members.
This quarter, the market is expecting Frost Bank’s revenue to grow 8.5% year on year, in line with the 7.7% increase it recorded in the same quarter last year.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Frost Bank has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Frost Bank’s peers in the regional banks segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Merchants Bancorp delivered year-on-year revenue growth of 20.1%, meeting analysts’ expectations, and OFG Bancorp reported revenues up 4.2%, topping estimates by 4.8%. OFG Bancorp traded up 7.6% following the results.
Read our full analysis of Merchants Bancorp’s results here and OFG Bancorp’s results here.
There has been positive sentiment among investors in the regional banks segment, with share prices up 10.3% on average over the last month. Frost Bank is up 6% during the same time and is heading into earnings with an average analyst price target of $146.67 (compared to the current share price of $143.46).
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