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Western Alliance (WAL) Reports Q3 Earnings: What Key Metrics Have to Say

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Western Alliance (WAL - Free Report) reported $833.1 million in revenue for the quarter ended September 2024, representing a year-over-year increase of 14.9%. EPS of $1.80 for the same period compares to $1.97 a year ago.

The reported revenue compares to the Zacks Consensus Estimate of $811.4 million, representing a surprise of +2.67%. The company delivered an EPS surprise of -5.26%, with the consensus EPS estimate being $1.90.

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.

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: 64.5% versus 59.1% estimated by five analysts on average.
  • Net Interest Margin: 3.6% versus the five-analyst average estimate of 3.4%.
  • Net charge-offs to average loans - annualized: 0.2% versus 0.2% estimated by four analysts on average.
  • Average Balance - Total interest earning assets: $77.80 billion compared to the $76.26 billion average estimate based on four analysts.
  • Tier 1 Leverage Ratio: 7.8% compared to the 8.1% average estimate based on two analysts.
  • Total non-interest income: $126.20 million versus the five-analyst average estimate of $116.12 million.
  • Net interest income: $696.90 million versus the four-analyst average estimate of $685.35 million.
  • Net loan servicing revenue: $12.30 million versus $37.42 million estimated by three analysts on average.
  • Service charges and fees: $30.10 million compared to the $10.97 million average estimate based on three analysts.
  • Net Interest Income (FTE): $706.90 million versus the three-analyst average estimate of $694.74 million.
  • Net gain on loan origination and sale activities: $46.30 million compared to the $49.69 million average estimate based on three analysts.
  • Other non-interest income: $18.60 million versus $7.07 million estimated by two analysts on average.
View all Key Company Metrics for Western Alliance here>>>

Shares of Western Alliance have returned +8.1% over the past month versus the Zacks S&P 500 composite's +3.8% 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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