United Bankshares (UBSI) Earnings Anticipated to Develop: What to Know Forward of Q2 Launch

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United Bankshares (UBSI) Earnings Anticipated to Develop: What to Know Forward of Q2 Launch


The market expects United Bankshares (UBSI) to ship a year-over-year enhance in earnings on increased revenues when it reviews outcomes for the quarter ended June 2021. This widely-known consensus outlook is necessary in assessing the corporate’s earnings image, however a strong issue which may affect its near-term inventory worth is how the precise outcomes examine to those estimates.

The earnings report would possibly assist the inventory transfer increased if these key numbers are higher than expectations. Alternatively, in the event that they miss, the inventory might transfer decrease.

Whereas the sustainability of the rapid worth change and future earnings expectations will principally rely upon administration’s dialogue of enterprise situations on the earnings name, it is price handicapping the likelihood of a constructive EPS shock.

Zacks Consensus Estimate

This holding firm for United Financial institution is anticipated to submit quarterly earnings of $0.72 per share in its upcoming report, which represents a year-over-year change of +63.6%.

Revenues are anticipated to be $264.95 million, up 2.3% from the year-ago quarter.

Estimate Revisions Pattern

The consensus EPS estimate for the quarter has remained unchanged over the past 30 days. That is basically a mirrored image of how the overlaying analysts have collectively reassessed their preliminary estimates over this era.

Buyers ought to needless to say an combination change might not at all times replicate the route of estimate revisions by every of the overlaying analysts.

Worth, Consensus and EPS Shock

Earnings Whisper

Estimate revisions forward of an organization’s earnings launch provide clues to the enterprise situations for the interval whose outcomes are popping out. Our proprietary shock prediction mannequin — the Zacks Earnings ESP (Anticipated Shock Prediction) — has this perception at its core.

The Zacks Earnings ESP compares the Most Correct Estimate to the Zacks Consensus Estimate for the quarter; the Most Correct Estimate is a newer model of the Zacks Consensus EPS estimate. The concept right here is that analysts revising their estimates proper earlier than an earnings launch have the most recent data, which might probably be extra correct than what they and others contributing to the consensus had predicted earlier.

Thus, a constructive or unfavourable Earnings ESP studying theoretically signifies the doubtless deviation of the particular earnings from the consensus estimate. Nonetheless, the mannequin’s predictive energy is critical for constructive ESP readings solely.

A constructive Earnings ESP is a powerful predictor of an earnings beat, notably when mixed with a Zacks Rank #1 (Robust Purchase), 2 (Purchase) or 3 (Maintain). Our analysis exhibits that shares with this mix produce a constructive shock practically 70% of the time, and a strong Zacks Rank really will increase the predictive energy of Earnings ESP.

Please be aware {that a} unfavourable Earnings ESP studying isn’t indicative of an earnings miss. Our analysis exhibits that it’s tough to foretell an earnings beat with any diploma of confidence for shares with unfavourable Earnings ESP readings and/or Zacks Rank of 4 (Promote) or 5 (Robust Promote).

How Have the Numbers Formed Up for United Bankshares?

For United Bankshares, the Most Correct Estimate is identical because the Zacks Consensus Estimate, suggesting that there are not any current analyst views which differ from what have been thought-about to derive the consensus estimate. This has resulted in an Earnings ESP of 0%.

Alternatively, the inventory presently carries a Zacks Rank of #3.

So, this mix makes it tough to conclusively predict that United Bankshares will beat the consensus EPS estimate.

Does Earnings Shock Historical past Maintain Any Clue?

Analysts typically take into account to what extent an organization has been capable of match consensus estimates up to now whereas calculating their estimates for its future earnings. So, it is price looking on the shock historical past for gauging its affect on the upcoming quantity.

For the final reported quarter, it was anticipated that United Bankshares would submit earnings of $0.74 per share when it really produced earnings of $0.83, delivering a shock of +12.16%.

Over the past 4 quarters, the corporate has crushed consensus EPS estimates 4 occasions.

Backside Line

An earnings beat or miss is probably not the only foundation for a inventory shifting increased or decrease. Many shares find yourself dropping floor regardless of an earnings beat on account of different components that disappoint traders. Equally, unexpected catalysts assist various shares acquire regardless of an earnings miss.

That mentioned, betting on shares which might be anticipated to beat earnings expectations does enhance the chances of success. This is the reason it is price checking an organization’s Earnings ESP and Zacks Rank forward of its quarterly launch. Be sure that to make the most of our Earnings ESP Filter to uncover the perfect shares to purchase or promote earlier than they’ve reported.

United Bankshares does not seem a compelling earnings-beat candidate. Nonetheless, traders ought to take note of different components too for betting on this inventory or staying away from it forward of its earnings launch.

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The views and opinions expressed herein are the views and opinions of the writer and don’t essentially replicate these of Nasdaq, Inc.



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