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Western Alliance (WAL) Q2 Earnings: Taking a Look at Key Metrics Versus Estimates
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For the quarter ended June 2024, Western Alliance (WAL - Free Report) reported revenue of $781.7 million, up 15.3% over the same period last year. EPS came in at $1.75, compared to $1.96 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $736.28 million, representing a surprise of +6.17%. The company delivered an EPS surprise of +2.34%, with the consensus EPS estimate being $1.71.
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 Western Alliance performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Efficiency Ratio: 62.3% compared to the 61.6% average estimate based on six analysts.
Net Interest Margin: 3.6% versus the six-analyst average estimate of 3.4%.
Average Balance - Total interest earning assets: $73.87 billion versus $72.12 billion estimated by five analysts on average.
Net charge-offs to average loans - annualized: 0.2% versus 0.1% estimated by four analysts on average.
Tier 1 Leverage Ratio: 8% versus the two-analyst average estimate of 8.1%.
Total non-interest income: $115.20 million versus $112.09 million estimated by six analysts on average.
Net interest income: $656.60 million versus $618.81 million estimated by five analysts on average.
Net loan servicing revenue: $38.10 million versus the four-analyst average estimate of $33.23 million.
Net gain on loan origination and sale activities: $46.80 million versus $48.83 million estimated by four analysts on average.
Service charges and fees: $10.80 million versus the four-analyst average estimate of $9.92 million.
Commercial banking related income: $6.70 million compared to the $6.47 million average estimate based on four analysts.
Income from equity investments: $4.20 million versus $9.52 million estimated by three analysts on average.
Shares of Western Alliance have returned +23.3% over the past month versus the Zacks S&P 500 composite's +2.1% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.
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Western Alliance (WAL) Q2 Earnings: Taking a Look at Key Metrics Versus Estimates
For the quarter ended June 2024, Western Alliance (WAL - Free Report) reported revenue of $781.7 million, up 15.3% over the same period last year. EPS came in at $1.75, compared to $1.96 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $736.28 million, representing a surprise of +6.17%. The company delivered an EPS surprise of +2.34%, with the consensus EPS estimate being $1.71.
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 Western Alliance performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
- Efficiency Ratio: 62.3% compared to the 61.6% average estimate based on six analysts.
- Net Interest Margin: 3.6% versus the six-analyst average estimate of 3.4%.
- Average Balance - Total interest earning assets: $73.87 billion versus $72.12 billion estimated by five analysts on average.
- Net charge-offs to average loans - annualized: 0.2% versus 0.1% estimated by four analysts on average.
- Tier 1 Leverage Ratio: 8% versus the two-analyst average estimate of 8.1%.
- Total non-interest income: $115.20 million versus $112.09 million estimated by six analysts on average.
- Net interest income: $656.60 million versus $618.81 million estimated by five analysts on average.
- Net loan servicing revenue: $38.10 million versus the four-analyst average estimate of $33.23 million.
- Net gain on loan origination and sale activities: $46.80 million versus $48.83 million estimated by four analysts on average.
- Service charges and fees: $10.80 million versus the four-analyst average estimate of $9.92 million.
- Commercial banking related income: $6.70 million compared to the $6.47 million average estimate based on four analysts.
- Income from equity investments: $4.20 million versus $9.52 million estimated by three analysts on average.
View all Key Company Metrics for Western Alliance here>>>Shares of Western Alliance have returned +23.3% over the past month versus the Zacks S&P 500 composite's +2.1% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.