Wintrust Financial Misses Earnings Estimates, Raises Investor Questions
Wintrust Financial (WTFC) has reported quarterly earnings of $2.47 per share, which falls short of the Zacks Consensus Estimate of $2.50 per share. In the same quarter last year, the company earned $2.53 per share. These earnings figures are adjusted for non-recurring items.
This quarterly report shows an earnings surprise of -1.20%. A few months ago, analysts expected Wintrust to report earnings of $2.40 per share, but the bank actually provided earnings of $2.32 per share, resulting in a surprise of -3.33%.
Over the past four quarters, Wintrust has exceeded EPS consensus estimates only once.
In the quarter ending September 2024, Wintrust, which operates in the Zacks Banks – Midwest industry, reported revenues of $615.73 million. This also fell below the Zacks Consensus Estimate by 0.90%. A year ago, revenues were $574.84 million. Notably, Wintrust has beaten consensus revenue estimates two times in the last four quarters.
The future stock movement will largely depend on what management says during the upcoming earnings call and the outlook they provide.
Since the start of the year, Wintrust shares have increased by approximately 24.4%, outperforming the S&P 500’s gain of 23%.
Future Prospects for Wintrust Financial
Despite its strong performance this year, investors are left wondering about the future of Wintrust stock.
There is no simple answer, but one useful way to assess the situation is by looking at the company’s earnings outlook. This includes current expectations for quarterly earnings as well as any recent changes in these estimates.
Research has shown a close link between short-term stock performance and the direction of earnings estimate revisions. Investors can track these revisions on their own or use tools like the Zacks Rank, which is known for its effectiveness in highlighting earnings estimate changes.
Leading up to this earnings release, the revisions for Wintrust have been mixed. Although these could shift after the latest report, the current assessment gives Wintrust a Zacks Rank of #3 (Hold), indicating it is expected to match market performance in the near term. A detailed list of Zacks #1 Rank (Strong Buy) stocks is available here.
It will be intriguing to observe how estimates for upcoming quarters and the current fiscal year are adjusted soon. The current consensus EPS estimate stands at $2.44, with projected revenues of $630.55 million for the next quarter, and $10.11 with $2.44 billion in revenues for the full fiscal year.
Investors should also keep in mind that industry trends significantly influence stock performance. Currently, the Banks – Midwest sector holds a position in the top 28% of more than 250 Zacks industries. Research indicates that stocks in the top half of Zacks-ranked industries outperform those in the bottom half by more than a 2-to-1 ratio.
Another player in the same sector, Independent Bank (IBCP), has not yet reported its results for the quarter ending September 2024, which are due on October 24.
Analysts predict that Independent Bank will post earnings of $0.76 per share, reflecting a year-over-year decline of 8.4%. The earnings consensus has remained steady over the past month. Expected revenues for Independent Bank are set at $55.05 million, unchanged compared to the previous year.
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The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
