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Compared to Estimates, Webster Financial (WBS) Q2 Earnings: A Look at Key Metrics
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For the quarter ended June 2024, Webster Financial (WBS - Free Report) reported revenue of $614.6 million, down 8.7% over the same period last year. EPS came in at $1.26, compared to $1.50 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $671.91 million, representing a surprise of -8.53%. The company delivered an EPS surprise of -5.97%, with the consensus EPS estimate being $1.34.
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 Webster Financial performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Efficiency Ratio: 46.2% versus the seven-analyst average estimate of 47.3%.
Net Interest Margin: 3.2% compared to the 3.4% average estimate based on seven analysts.
Average balance - Total interest-earning assets: $68.86 billion versus the six-analyst average estimate of $69.40 billion.
Net charge-offs/average loans and leases (annualized): 0.3% versus the five-analyst average estimate of 0.3%.
Total nonperforming loans and leases: $368.84 million compared to the $298.90 million average estimate based on two analysts.
Total Non-Interest Income: $42.30 million versus the seven-analyst average estimate of $95.98 million.
Deposit service fees: $41.03 million versus $43.76 million estimated by six analysts on average.
Wealth and investment services: $8.56 million versus $8.08 million estimated by six analysts on average.
Loan and lease related fees: $19.33 million compared to the $20.21 million average estimate based on six analysts.
Increase in cash surrender value of life insurance policies: $6.36 million compared to the $6.17 million average estimate based on five analysts.
Non-interest income- Other income: $16.94 million compared to the $19.02 million average estimate based on five analysts.
Tax-equivalent Net Interest Income: $572.30 million versus $587.44 million estimated by five analysts on average.
Shares of Webster Financial have returned +15.8% over the past month versus the Zacks S&P 500 composite's +2% 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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Compared to Estimates, Webster Financial (WBS) Q2 Earnings: A Look at Key Metrics
For the quarter ended June 2024, Webster Financial (WBS - Free Report) reported revenue of $614.6 million, down 8.7% over the same period last year. EPS came in at $1.26, compared to $1.50 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $671.91 million, representing a surprise of -8.53%. The company delivered an EPS surprise of -5.97%, with the consensus EPS estimate being $1.34.
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 Webster Financial performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
- Efficiency Ratio: 46.2% versus the seven-analyst average estimate of 47.3%.
- Net Interest Margin: 3.2% compared to the 3.4% average estimate based on seven analysts.
- Average balance - Total interest-earning assets: $68.86 billion versus the six-analyst average estimate of $69.40 billion.
- Net charge-offs/average loans and leases (annualized): 0.3% versus the five-analyst average estimate of 0.3%.
- Total nonperforming loans and leases: $368.84 million compared to the $298.90 million average estimate based on two analysts.
- Total Non-Interest Income: $42.30 million versus the seven-analyst average estimate of $95.98 million.
- Deposit service fees: $41.03 million versus $43.76 million estimated by six analysts on average.
- Wealth and investment services: $8.56 million versus $8.08 million estimated by six analysts on average.
- Loan and lease related fees: $19.33 million compared to the $20.21 million average estimate based on six analysts.
- Increase in cash surrender value of life insurance policies: $6.36 million compared to the $6.17 million average estimate based on five analysts.
- Non-interest income- Other income: $16.94 million compared to the $19.02 million average estimate based on five analysts.
- Tax-equivalent Net Interest Income: $572.30 million versus $587.44 million estimated by five analysts on average.
View all Key Company Metrics for Webster Financial here>>>Shares of Webster Financial have returned +15.8% over the past month versus the Zacks S&P 500 composite's +2% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.