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Here's What Key Metrics Tell Us About Prosperity Bancshares (PB) Q3 Earnings

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Prosperity Bancshares (PB - Free Report) reported $278.27 million in revenue for the quarter ended September 2023, representing a year-over-year decline of 5.8%. EPS of $1.20 for the same period compares to $1.49 a year ago.

The reported revenue represents a surprise of +0.04% over the Zacks Consensus Estimate of $278.16 million. With the consensus EPS estimate being $1.19, the EPS surprise was +0.84%.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

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 Prosperity Bancshares performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

  • Net Interest Margin (Tax Equivalent Basis): 2.7% versus 2.7% estimated by seven analysts on average.
  • Efficiency Ratio: 48.7% versus the seven-analyst average estimate of 48.7%.
  • Net charge-offs to average loans: 0.1% compared to the 0.1% average estimate based on six analysts.
  • Average balance - Total interest-earning assets: $35.12 billion compared to the $34.74 billion average estimate based on five analysts.
  • Tier 1 Risk-based Capital Ratio: 15% compared to the 14.4% average estimate based on two analysts.
  • Total nonperforming assets: $69.48 million versus the two-analyst average estimate of $48.02 million.
  • Tier 1 Leverage Capital Ratio: 10% versus 9.7% estimated by two analysts on average.
  • Total nonperforming loans: $60.13 million compared to the $43.82 million average estimate based on two analysts.
  • Total Risk-based Capital Ratio: 16.1% compared to the 15.9% average estimate based on two analysts.
  • Total Noninterest Income: $38.74 million compared to the $38.52 million average estimate based on seven analysts.
  • Net Interest Income: $239.52 million compared to the $239.68 million average estimate based on six analysts.
  • Net Interest Income (Tax Equivalent Basis): $240.52 million versus $240.38 million estimated by five analysts on average.
View all Key Company Metrics for Prosperity Bancshares here>>>

Shares of Prosperity Bancshares have returned -6.4% over the past month versus the Zacks S&P 500 composite's -1.6% 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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