Stellar Bancorp (STEL) Beats Q3 Earnings and Revenue Estimates

Financial Performance - Stellar Bancorp reported quarterly earnings of $0.63 per share, exceeding the Zacks Consensus Estimate of $0.49 per share, and up from $0.58 per share a year ago, representing an earnings surprise of 28.57% [1] - The company posted revenues of $107.81 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 1.87%, although this is a decline from year-ago revenues of $111.42 million [1] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.48 on revenues of $106.5 million, and for the current fiscal year, it is $2.01 on revenues of $427.67 million [4] - The estimate revisions trend for Stellar Bancorp is currently unfavorable, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [4] Industry Context - The Banks - Southeast industry, to which Stellar Bancorp belongs, is currently in the bottom 45% of over 250 Zacks industries, suggesting that the industry outlook may negatively impact the stock's performance [5] - Customers Bancorp, another company in the same industry, is expected to report a significant decline in earnings, with a projected EPS of $1.45, down 44% year-over-year, and revenues expected to decrease by 11.5% [5]