Westamerica (WABC) Q2 Earnings Top Estimates

Core Viewpoint - Westamerica Bank reported quarterly earnings of $1.33 per share, surpassing the Zacks Consensus Estimate of $1.32, but down from $1.51 per share a year ago [8]. Financial Performance - The company posted revenues of $74.27 million for the quarter ended June 2024, missing the Zacks Consensus Estimate by 0.02% and down from $80.58 million year-over-year [2]. - The current consensus EPS estimate for the upcoming quarter is $1.30 on revenues of $73.5 million, and for the current fiscal year, it is $5.25 on revenues of $295.81 million [5]. Stock Performance - Westamerica shares have increased approximately 1.8% since the beginning of the year, while the S&P 500 has gained 17.2% [3]. - The stock has underperformed the market so far this year, leading to questions about its future performance [4]. Earnings Estimate Revisions - The trend for earnings estimate revisions for Westamerica is currently unfavorable, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [12]. - Over the last four quarters, the company has surpassed consensus EPS estimates two times [9]. Industry Context - The Zacks Industry Rank for Banks - West places it in the bottom 36% of over 250 Zacks industries, suggesting that the outlook for the industry can significantly impact stock performance [13].