Veritex Holdings Reports Strong Earnings in Q3 but Faces Market Challenges
Veritex Holdings (VBTX) announced earnings of $0.59 per share for the recent quarter, surpassing the Zacks Consensus Estimate of $0.56 per share. This marks a slight decline from the $0.60 per share reported last year, with figures adjusted for one-time items.
The 5.36% earnings surprise signals an improvement compared to the prior quarter, where the company fell short of earnings expectations of $0.53 per share, reporting only $0.52, resulting in a surprise of -1.89%.
In the past year, Veritex has only exceeded consensus EPS estimates once out of four occasions. The bank holding company, part of the Zacks Banks – Southeast sector, recorded revenues of $113.17 million for the quarter ending September 2024, which is a 3.11% increase over the Zacks Consensus Estimate and up from revenues of $109.04 million a year earlier. Similar to its earnings results, Veritex has topped consensus revenue estimates only once in the same timeframe.
The future trajectory of Veritex’s stock price will largely depend on insights from management during the upcoming earnings call, as these discussions can influence market perceptions significantly.
Since the start of the year, Veritex Holdings shares have risen approximately 16%, but this lags behind the S&P 500’s performance, which has seen a gain of 22.7%.
Investors Ponder the Future of Veritex Holdings
Despite a positive quarterly report, many investors are left wondering what is next for Veritex Holdings.
The outlook may not be straightforward, but current earning expectations are a key indicator. This includes how predictions for future earnings have shifted leading up to this report.
Research indicates a strong link between short-term stock performance and trends in earnings estimate revisions. Investors can monitor these changes themselves or utilize established ratings, such as the Zacks Rank, known for its effectiveness in capturing the influence of earnings revisions.
Prior to this earnings announcement, revision trends for Veritex Holdings were negative. Although recent results may alter this outlook, the stock currently holds a Zacks Rank #4 (Sell), suggesting it may struggle to outperform the market soon. Investors can explore Zacks’ Top Rank stocks for more potential opportunities.
Looking ahead, it will be essential to observe how future estimates for the upcoming quarters and the current fiscal year evolve. Present consensus indicates an EPS estimate of $0.59 on $111.9 million in revenues for the next quarter, and $2.13 with $431.05 million in revenues for the ongoing fiscal year.
Moreover, the overall industry outlook plays a crucial role in stock performance. Currently, the Zacks Industry Rank places Banks – Southeast in the bottom 29% out of over 250 industries analyzed, reiterating the significance of broader industry trends on individual stocks.
Seacoast Banking (SBCF), a competitor in the same sector, has yet to announce its results for the quarter ending September 2024, with reports expected on October 24. Analysts project quarterly earnings of $0.36 per share for Seacoast, which would represent a decrease of 2.7% year-over-year, although the EPS estimate has seen a modest increase of 1.2% in the past month. Revenue expectations stand at $128.57 million, down 6.2% from the same quarter last year.
Should You Invest in Veritex Holdings, Inc. (VBTX)?
Before making any investment decisions regarding Veritex Holdings, Inc. (VBTX), consider exploring broader investment opportunities. Zacks Investment Research provides insights into the top stocks to consider for the next 30 days.
Having operated since 1978, Zacks offers valuable tools and impartial research. The Zacks Rank stock-rating system has historically outperformed the S&P 500, delivering an average gain of +24.08% per year from January 1, 1988, to May 6, 2024.
For the latest investment recommendations from Zacks, you can also download their report on five stocks projected to double soon.
Veritex Holdings, Inc. (VBTX): Free Stock Analysis Report
Seacoast Banking Corporation of Florida (SBCF): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
