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Western Alliance (WAL) Reports Q2 Earnings: What Key Metrics Have to Say
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For the quarter ended June 2023, Western Alliance (WAL - Free Report) reported revenue of $678 million, up 7.9% over the same period last year. EPS came in at $1.96, compared to $2.39 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $658.88 million, representing a surprise of +2.90%. The company delivered an EPS surprise of -1.01%, with the consensus EPS estimate being $1.98.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Western Alliance performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Efficiency Ratio: 50.5% versus 52.03% estimated by five analysts on average.
Net Interest Margin: 3.42% versus 3.48% estimated by five analysts on average.
Average Balance - Total interest earning assets: $65.65 billion compared to the $65.63 billion average estimate based on four analysts.
Net charge-offs to average loans: 0.06% compared to the 0.11% average estimate based on four analysts.
Total non-interest income: $119 million versus the five-analyst average estimate of $85.54 million.
Net interest income: $550.30 million versus the four-analyst average estimate of $577.30 million.
Net gain on loan origination and sale activities: $62.30 million versus the three-analyst average estimate of $28.80 million.
Net loan servicing revenue (expense): $24.10 million versus the three-analyst average estimate of $25.67 million.
Service charges and fees: $20.80 million versus the three-analyst average estimate of $9.03 million.
Income from equity investments: $0.70 million versus the three-analyst average estimate of $1.97 million.
Commercial banking related income: $6 million compared to the $6.02 million average estimate based on three analysts.
Other non-interest income [$M]: $4.80 million compared to the $8.62 million average estimate based on two analysts.
Shares of Western Alliance have returned +6.4% over the past month versus the Zacks S&P 500 composite's +2.7% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
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Western Alliance (WAL) Reports Q2 Earnings: What Key Metrics Have to Say
For the quarter ended June 2023, Western Alliance (WAL - Free Report) reported revenue of $678 million, up 7.9% over the same period last year. EPS came in at $1.96, compared to $2.39 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $658.88 million, representing a surprise of +2.90%. The company delivered an EPS surprise of -1.01%, with the consensus EPS estimate being $1.98.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Western Alliance performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
- Efficiency Ratio: 50.5% versus 52.03% estimated by five analysts on average.
- Net Interest Margin: 3.42% versus 3.48% estimated by five analysts on average.
- Average Balance - Total interest earning assets: $65.65 billion compared to the $65.63 billion average estimate based on four analysts.
- Net charge-offs to average loans: 0.06% compared to the 0.11% average estimate based on four analysts.
- Total non-interest income: $119 million versus the five-analyst average estimate of $85.54 million.
- Net interest income: $550.30 million versus the four-analyst average estimate of $577.30 million.
- Net gain on loan origination and sale activities: $62.30 million versus the three-analyst average estimate of $28.80 million.
- Net loan servicing revenue (expense): $24.10 million versus the three-analyst average estimate of $25.67 million.
- Service charges and fees: $20.80 million versus the three-analyst average estimate of $9.03 million.
- Income from equity investments: $0.70 million versus the three-analyst average estimate of $1.97 million.
- Commercial banking related income: $6 million compared to the $6.02 million average estimate based on three analysts.
- Other non-interest income [$M]: $4.80 million compared to the $8.62 million average estimate based on two analysts.
View all Key Company Metrics for Western Alliance here>>>Shares of Western Alliance have returned +6.4% over the past month versus the Zacks S&P 500 composite's +2.7% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.