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Compared to Estimates, Webster Financial (WBS) Q2 Earnings: A Look at Key Metrics

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Webster Financial (WBS - Free Report) reported $673.2 million in revenue for the quarter ended June 2023, representing a year-over-year increase of 10.8%. EPS of $1.50 for the same period compares to $1.29 a year ago.

The reported revenue represents a surprise of -2.56% over the Zacks Consensus Estimate of $690.86 million. With the consensus EPS estimate being $1.47, the EPS surprise was +2.04%.

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.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how Webster Financial performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

  • Efficiency Ratio: 42.2% versus the six-analyst average estimate of 43.39%.
  • Average balance - Total interest-earning assets: $70.10 billion versus the six-analyst average estimate of $69.18 billion.
  • Net Interest Margin: 3.35% compared to the 3.51% average estimate based on six analysts.
  • Net charge-offs/average loans and leases (annualized): 0.16% versus the four-analyst average estimate of 0.25%.
  • Total nonperforming loans and leases: $218.87 million versus the two-analyst average estimate of $225.11 million.
  • Deposit service fees: $45.42 million versus the six-analyst average estimate of $46.54 million.
  • Total Non-Interest Income: $89.37 million versus the six-analyst average estimate of $98.35 million.
  • Loan and lease related fees: $20.53 million versus $23.54 million estimated by six analysts on average.
  • Wealth and investment services: $7.39 million compared to the $6.82 million average estimate based on six analysts.
  • Increase in cash surrender value of life insurance policies: $6.29 million versus the five-analyst average estimate of $6.85 million.
  • Non-interest income- Other income: $9.66 million versus $13.86 million estimated by five analysts on average.
  • Tax-equivalent Net Interest Income: $601.12 million versus the five-analyst average estimate of $607.05 million.
View all Key Company Metrics for Webster Financial here>>>

Shares of Webster Financial have returned +16.2% over the past month versus the Zacks S&P 500 composite's +3.6% 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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