Western Alliance (WAL) Q2 Earnings and Revenues Top Estimates

Core Viewpoint - Western Alliance (WAL) reported quarterly earnings of $1.75 per share, exceeding the Zacks Consensus Estimate of $1.71 per share, but down from $1.96 per share a year ago [1][6] Financial Performance - The company posted revenues of $781.7 million for the quarter ended June 2024, surpassing the Zacks Consensus Estimate by 6.17%, compared to $678 million in the same quarter last year [6] - The earnings surprise for the quarter was 2.34%, with a previous quarter's earnings of $1.72 per share exceeding expectations of $1.69 per share by 1.78% [5] Market Performance - Western Alliance shares have increased approximately 11.5% since the beginning of the year, while the S&P 500 has gained 17.2% [2] - The company has surpassed consensus EPS estimates three times over the last four quarters [6] Earnings Outlook - The estimate revisions trend for Western Alliance is currently unfavorable, leading to a Zacks Rank 4 (Sell), indicating expected underperformance in the near future [4] - The current consensus EPS estimate for the upcoming quarter is $1.92 on revenues of $778.48 million, and for the current fiscal year, it is $7.41 on revenues of $3.05 billion [12] Industry Context - The Banks - West industry, to which Western Alliance belongs, is currently ranked in the bottom 36% of over 250 Zacks industries, suggesting potential challenges ahead [9] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact investor sentiment [8]