Earnings Preview: City Holding (CHCO) Q3 Earnings Expected to Decline

Core Viewpoint - City Holding (CHCO) is anticipated to report a year-over-year decline in earnings despite an increase in revenues for the quarter ended September 2024, with the consensus EPS estimate at $1.92, reflecting a -3% change from the previous year, while revenues are expected to reach $73.9 million, a 0.9% increase [1][3]. Earnings Expectations - The stock may experience upward movement if the actual earnings exceed expectations, while a miss could lead to a decline [2]. - The management's discussion during the earnings call will significantly influence the sustainability of any immediate price changes and future earnings expectations [2]. Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating a stable outlook from covering analysts [4]. - The Most Accurate Estimate for City Holding is higher than the Zacks Consensus Estimate, resulting in a positive Earnings ESP of +0.78%, suggesting recent bullish sentiment among analysts [10]. Earnings Surprise History - In the last reported quarter, City Holding exceeded the expected EPS of $1.88 by delivering $1.96, resulting in a surprise of +4.26% [12]. - Over the past four quarters, the company has beaten consensus EPS estimates three times [13]. Zacks Rank and Predictive Power - City Holding currently holds a Zacks Rank of 4, which complicates the prediction of an earnings beat despite the positive Earnings ESP [11]. - A positive Earnings ESP is a strong indicator of an earnings beat, especially when combined with a favorable Zacks Rank [8]. Industry Comparison - Regions Financial (RF), another player in the Zacks Banks - Southeast industry, is expected to report earnings of $0.53 per share, reflecting an 8.2% year-over-year increase, with revenues projected at $1.79 billion, a 3.9% decline from the previous year [17]. - The consensus EPS estimate for Regions Financial has been revised 0.8% higher in the last 30 days, but a lower Most Accurate Estimate has resulted in an Earnings ESP of -2.09%, making it difficult to predict an earnings beat [18].