Commercial banking company Preferred Bank (NASDAQ: PFBC) will be reporting earnings this Friday morning. Here’s what to look for.
Preferred Bank met analysts’ revenue expectations last quarter, reporting revenues of $73.47 million, up 4% year on year. It was a mixed quarter for the company, with a narrow beat of analysts’ net interest income estimates but a narrow beat of analysts’ EPS estimates.
Is Preferred 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 Preferred Bank’s revenue to decline 2.5% year on year, a reversal from the 3.7% 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. Preferred Bank has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Preferred Bank’s peers in the regional banks segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Washington Trust Bancorp delivered year-on-year revenue growth of 15%, beating analysts’ expectations by 4.1%, and Dime Community Bancshares reported revenues up 15.4%, topping estimates by 2.6%. Washington Trust Bancorp traded up 4% following the results while Dime Community Bancshares was also up 5.3%.
Read our full analysis of Washington Trust Bancorp’s results here and Dime Community Bancshares’s results here.
Over the last year or so, investors' attention has moved from one major market theme to the next, spanning AI disruption and surging infrastructure investment to geopolitical tensions, interest rates, and the health of the broader economy. While some of the regional banks stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 2.5% on average over the last month. Preferred Bank’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $114.40 (compared to the current share price of $105.75).
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