RBB (RBB) got here out with quarterly earnings of $0.67 per share, lacking the Zacks Consensus Estimate of $0.68 per share. This compares to earnings of $0.33 per share a yr in the past. These figures are adjusted for non-recurring gadgets.
This quarterly report represents an earnings shock of -1.47%. 1 / 4 in the past, it was anticipated that this financial institution holding firm would publish earnings of $0.56 per share when it really produced earnings of $0.63, delivering a shock of 12.50%.
During the last 4 quarters, the corporate has surpassed consensus EPS estimates 3 times.
RBB, which belongs to the Zacks Banks – West trade, posted revenues of $34.23 million for the quarter ended June 2021, lacking the Zacks Consensus Estimate by 1.50%. This compares to year-ago revenues of $27.24 million. The corporate has topped consensus income estimates 3 times during the last 4 quarters.
The sustainability of the inventory’s fast worth motion based mostly on the recently-released numbers and future earnings expectations will largely rely on administration’s commentary on the earnings name.
RBB shares have added about 53.4% for the reason that starting of the yr versus the S&P 500’s acquire of 17.5%.
What’s Subsequent for RBB?
Whereas RBB has outperformed the market to this point this yr, the query that involves buyers’ minds is: what’s subsequent for the inventory?
There aren’t any simple solutions to this key query, however one dependable measure that may assist buyers handle that is the corporate’s earnings outlook. Not solely does this embrace present consensus earnings expectations for the approaching quarter(s), but additionally how these expectations have modified these days.
Empirical analysis reveals a powerful correlation between near-term inventory actions and traits in earnings estimate revisions. Traders can observe such revisions by themselves or depend on a tried-and-tested score software just like the Zacks Rank, which has a formidable observe report of harnessing the ability of earnings estimate revisions.
Forward of this earnings launch, the estimate revisions pattern for RBB was blended. Whereas the magnitude and course of estimate revisions may change following the corporate’s just-released earnings report, the present standing interprets right into a Zacks Rank #3 (Maintain) for the inventory. So, the shares are anticipated to carry out in keeping with the market within the close to future. You possibly can see the entire listing of right this moment’s Zacks #1 Rank (Sturdy Purchase) shares right here.
It will likely be attention-grabbing to see how estimates for the approaching quarters and present fiscal yr change within the days forward. The present consensus EPS estimate is $0.67 on $35.1 million in revenues for the approaching quarter and $2.63 on $140.35 million in revenues for the present fiscal yr.
Traders must be conscious of the truth that the outlook for the trade can have a fabric affect on the efficiency of the inventory as effectively. When it comes to the Zacks Business Rank, Banks – West is at present within the high 33% of the 250 plus Zacks industries. Our analysis reveals that the highest 50% of the Zacks-ranked industries outperform the underside 50% by an element of greater than 2 to 1.
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The views and opinions expressed herein are the views and opinions of the writer and don’t essentially mirror these of Nasdaq, Inc.