Umpqua Holdings (UMPQ) got here out with quarterly earnings of $0.68 per share, beating the Zacks C
Umpqua Holdings (UMPQ) got here out with quarterly earnings of $0.68 per share, beating the Zacks Consensus Estimate of $0.50 per share. This compares to earnings of $0.38 per share a yr in the past. These figures are adjusted for non-recurring objects.
This quarterly report represents an earnings shock of 36%. 1 / 4 in the past, it was anticipated that this regional financial institution would submit earnings of $0.34 per share when it truly produced earnings of $0.57, delivering a shock of 67.65%.
During the last 4 quarters, the corporate has surpassed consensus EPS estimates thrice.
Umpqua, which belongs to the Zacks Banks – West business, posted revenues of $358.87 million for the quarter ended December 2020, surpassing the Zacks Consensus Estimate by 7.25%. This compares to year-ago revenues of $310.56 million. The corporate has topped consensus income estimates thrice over the past 4 quarters.
The sustainability of the inventory’s fast worth motion based mostly 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 10.2% because the starting of the yr versus the S&P 500’s acquire of 1.1%.
What’s Subsequent for Umpqua?
Whereas Umpqua 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 deal with 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 recently.
Empirical analysis exhibits 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 ranking device just like the Zacks Rank, which has a powerful observe report of harnessing the facility of earnings estimate revisions.
Forward of this earnings launch, the estimate revisions pattern for Umpqua was favorable. Whereas the magnitude and path of estimate revisions might change following the corporate’s just-released earnings report, the present standing interprets right into a Zacks Rank #2 (Purchase) for the inventory. So, the shares are anticipated to outperform the market within the close to future. You’ll be able to see the entire listing of right this moment’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 $0.39 on $310.80 million in revenues for the approaching quarter and $1.44 on $1.18 billion in revenues for the present fiscal yr.
Traders needs to be conscious of the truth that the outlook for the business can have a cloth affect on the efficiency of the inventory as nicely. By way of the Zacks Trade Rank, Banks – West is presently within the backside 27% of the 250 plus Zacks industries. Our analysis exhibits 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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