Earnings Preview: Western Alliance (WAL) Q3 Earnings Expected to Decline

Company Overview - Western Alliance (WAL) is expected to report a year-over-year decline in earnings of -3.6%, with an estimated earnings per share (EPS) of $1.90 for the quarter ended September 2024 [3] - Revenues are projected to be $811.4 million, reflecting an increase of 11.9% compared to the same quarter last year [3] Earnings Expectations - The earnings report is scheduled for release on October 17, 2024, and the stock price may rise if actual results exceed expectations, while a miss could lead to a decline [2] - The consensus EPS estimate has been revised 1.91% higher in the last 30 days, indicating a reassessment by analysts [4] Earnings Surprise Prediction - The Zacks Earnings ESP (Expected Surprise Prediction) model indicates that the Most Accurate Estimate for Western Alliance is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -0.57% [10] - This negative Earnings ESP suggests analysts have become bearish on the company's earnings prospects, making it challenging to predict an earnings beat [10] Historical Performance - In the last reported quarter, Western Alliance had an EPS of $1.75, surpassing the expected $1.71, resulting in a surprise of +2.34% [11] - Over the past four quarters, the company has beaten consensus EPS estimates three times [12] Industry Context - In the Zacks Banks - West industry, Preferred Bank (PFBC) is expected to report an EPS of $2.39, which represents a year-over-year decline of -11.8% [16] - Preferred Bank's revenue is anticipated to be $68.8 million, down 9.4% from the previous year [16] - The consensus EPS estimate for Preferred Bank has been revised 1.2% lower, but a higher Most Accurate Estimate has resulted in an Earnings ESP of 0.94% [17]