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What to Expect From People's United (PBCT) in Q2 Earnings?
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People's United Financial, Inc. is scheduled to report second-quarter 2018 results on Jul 19. Both revenues and earnings are anticipated to show year-over-year improvement.
Before we discuss the factors that could influence the results, let’s take a look at how the company performed in the last reported quarter.
People's United reported in line earnings in first-quarter 2018. Higher revenues along with elevated loans and deposits balances were the tailwinds. However, escalating expenses and provisions were the undermining factors.
Notably, People's United delivered positive earnings surprises in three of the four trailing quarters with an average beat of 4.87%.
People's United Financial, Inc. Price and EPS Surprise
Driven by strong fundamentals, shares of the company have gained 1.9% in the past three months, outperforming slight growth of the industry.
Will the upcoming earnings release give a boost to People's United stock? That depends largely on whether the firm is able to impress market with its second-quarter results.
Factors to Influence Q2 Results
Loan Growth: A modest increase in lending, mainly in the areas of commercial and industrial, and consumer during the quarter is expected to lend some support to People’s United’s results.
In addition, management’s expectations of loan and deposit growth in 2018 will likely be reflected in this quarter. Management expects loan portfolio to grow in the range of 4-6%, while deposits are projected to be up 3-5%.
Modest Rise in Net Interest Income (NII): Given the influence of rise in interest rates, People's United is anticipated to have recorded an increase in NII. Notably, management’s projections of 2018 NII’s growth in the range of 10-12% is likely to show impact in the quarter to be reported as well. This is based on the expectation of net interest margin in the range of 3.05-3.15%, on assumption of a rate hike of 25 basis points during the year.
Increase in Expenses: Despite undertaking a number of expense-saving initiatives, People’s United’s operating expenses have witnessed an elevated level. Though the company is focused on optimizing its branch network and has initiated installation of technology to improve efficiencies and reduce costs, escalating expense levels are likely to curb bottom-line expansion.
Earnings Whispers
Our proven model doesn’t conclusively show that People’s United will be able to beat the Zacks Consensus Estimate this time around, as it does not have the right combination of two key ingredients. Note that a stock with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better has significantly higher chances of beating estimates.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks ESP: The Earnings ESP for People’s United is 0.00%.
Zacks Rank: People’s United currently has a Zacks Rank #2 (Buy).
Notably, the Zacks Consensus Estimate for earnings for the to-be-reported quarter is 32 cents, which reflects year-over-year improvement of 33.3%. Further, the consensus estimate for sales of $395.6 million indicates 7.9% growth from the prior-year quarter.
Stocks That Warrant a Look
Here are some stocks worth considering, as they have the right combination of elements to post an earnings beat this quarter.
SunTrust Banks, Inc. (STI - Free Report) is scheduled to release results on Jul 20. It has an Earnings ESP of +0.31% and carries a Zacks Rank of 2.
KeyCorp (KEY - Free Report) has an Earnings ESP of +0.40% and carries a Zacks Rank of 3. The company is slated to release results on Jul 19.
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Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
Image: Bigstock
What to Expect From People's United (PBCT) in Q2 Earnings?
People's United Financial, Inc. is scheduled to report second-quarter 2018 results on Jul 19. Both revenues and earnings are anticipated to show year-over-year improvement.
Before we discuss the factors that could influence the results, let’s take a look at how the company performed in the last reported quarter.
People's United reported in line earnings in first-quarter 2018. Higher revenues along with elevated loans and deposits balances were the tailwinds. However, escalating expenses and provisions were the undermining factors.
Notably, People's United delivered positive earnings surprises in three of the four trailing quarters with an average beat of 4.87%.
People's United Financial, Inc. Price and EPS Surprise
People's United Financial, Inc. Price and EPS Surprise | People's United Financial, Inc. Quote
Driven by strong fundamentals, shares of the company have gained 1.9% in the past three months, outperforming slight growth of the industry.
Will the upcoming earnings release give a boost to People's United stock? That depends largely on whether the firm is able to impress market with its second-quarter results.
Factors to Influence Q2 Results
Loan Growth: A modest increase in lending, mainly in the areas of commercial and industrial, and consumer during the quarter is expected to lend some support to People’s United’s results.
In addition, management’s expectations of loan and deposit growth in 2018 will likely be reflected in this quarter. Management expects loan portfolio to grow in the range of 4-6%, while deposits are projected to be up 3-5%.
Modest Rise in Net Interest Income (NII): Given the influence of rise in interest rates, People's United is anticipated to have recorded an increase in NII. Notably, management’s projections of 2018 NII’s growth in the range of 10-12% is likely to show impact in the quarter to be reported as well. This is based on the expectation of net interest margin in the range of 3.05-3.15%, on assumption of a rate hike of 25 basis points during the year.
Increase in Expenses: Despite undertaking a number of expense-saving initiatives, People’s United’s operating expenses have witnessed an elevated level. Though the company is focused on optimizing its branch network and has initiated installation of technology to improve efficiencies and reduce costs, escalating expense levels are likely to curb bottom-line expansion.
Earnings Whispers
Our proven model doesn’t conclusively show that People’s United will be able to beat the Zacks Consensus Estimate this time around, as it does not have the right combination of two key ingredients. Note that a stock with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better has significantly higher chances of beating estimates.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks ESP: The Earnings ESP for People’s United is 0.00%.
Zacks Rank: People’s United currently has a Zacks Rank #2 (Buy).
Notably, the Zacks Consensus Estimate for earnings for the to-be-reported quarter is 32 cents, which reflects year-over-year improvement of 33.3%. Further, the consensus estimate for sales of $395.6 million indicates 7.9% growth from the prior-year quarter.
Stocks That Warrant a Look
Here are some stocks worth considering, as they have the right combination of elements to post an earnings beat this quarter.
The Blackstone Group L.P. (BX - Free Report) is slated to release results on Jul 19. It has an Earnings ESP of +3.70% and carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
SunTrust Banks, Inc. (STI - Free Report) is scheduled to release results on Jul 20. It has an Earnings ESP of +0.31% and carries a Zacks Rank of 2.
KeyCorp (KEY - Free Report) has an Earnings ESP of +0.40% and carries a Zacks Rank of 3. The company is slated to release results on Jul 19.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>