Puerto Rican financial institution Popular (NASDAQ: BPOP) will be reporting earnings tomorrow morning. Here’s what you need to know.
Popular beat analysts’ revenue expectations last quarter, reporting revenues of $872.5 million, up 9.6% year on year. It was a mixed quarter for the company, with a beat of analysts’ EPS estimates but a miss of analysts’ tangible book value per share estimates.
Is Popular 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 Popular’s revenue to grow 9% year on year, slowing from the 10.5% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Popular has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Popular’s peers in the regional banks segment, some have already reported their Q3 results, giving us a hint as to what we can expect. QCR Holdings’s revenues decreased 11.7% year on year, missing analysts’ expectations by 8.9%, and Washington Trust Bancorp reported revenues up 15%, topping estimates by 4.1%. Washington Trust Bancorp traded up 4% following the results.
Read our full analysis of QCR Holdings’s results here and Washington Trust Bancorp’s results here.
Investors in the regional banks segment have had fairly steady hands going into earnings, with share prices down 1.9% on average over the last month. Popular’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $195.20 (compared to the current share price of $160.88).
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