Umpqua Holdings (UMPQ) got here out with quarterly earnings of $0.53 per share, beating the Zacks Consensus Estimate of $0.44 per share. This compares to earnings of $0.24 per share a yr in the past. These figures are adjusted for non-recurring gadgets.
This quarterly report represents an earnings shock of 20.45%. 1 / 4 in the past, it was anticipated that this regional financial institution would publish earnings of $0.45 per share when it really produced earnings of $0.49, delivering a shock of 8.89%.
Over the past 4 quarters, the corporate has surpassed consensus EPS estimates 4 occasions.
Umpqua, which belongs to the Zacks Banks – West trade, posted revenues of $320.84 million for the quarter ended June 2021, surpassing the Zacks Consensus Estimate by 4.82%. This compares to year-ago revenues of $327.98 million. The corporate has topped consensus income estimates thrice over the past 4 quarters.
The sustainability of the inventory’s rapid value motion primarily based on the recently-released numbers and future earnings expectations will principally rely upon administration’s commentary on the earnings name.
Umpqua shares have added about 16.7% for the reason that starting of the yr versus the S&P 500’s achieve of 15.1%.
What’s Subsequent for Umpqua?
Whereas Umpqua has outperformed the market to this point this yr, the query that involves traders’ minds is: what’s subsequent for the inventory?
There are not any straightforward solutions to this key query, however one dependable measure that may assist traders handle that is the corporate’s earnings outlook. Not solely does this embody present consensus earnings expectations for the approaching quarter(s), but in addition how these expectations have modified recently.
Empirical analysis reveals a robust correlation between near-term inventory actions and developments in earnings estimate revisions. Buyers can observe such revisions by themselves or depend on a tried-and-tested score software just like the Zacks Rank, which has a powerful observe document of harnessing the facility of earnings estimate revisions.
Forward of this earnings launch, the estimate revisions development for Umpqua was blended. Whereas the magnitude and course of estimate revisions might 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 according to the market within the close to future. You’ll be able to see the entire checklist of immediately’s Zacks #1 Rank (Sturdy Purchase) shares right here.
Will probably be fascinating to see how estimates for the approaching quarters and present fiscal yr change within the days forward. The present consensus EPS estimate is $0.40 on $296.1 million in revenues for the approaching quarter and $1.71 on $1.22 billion in revenues for the present fiscal yr.
Buyers needs to be conscious of the truth that the outlook for the trade can have a fabric influence on the efficiency of the inventory as effectively. By way of the Zacks Trade Rank, Banks – West is at the moment within the prime 39% 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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Umpqua Holdings Company (UMPQ): Free Inventory Evaluation Report
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