Western Alliance (WAL) Q2 Earnings on the Horizon: Analysts' Insights on Key Performance Measures

Core Viewpoint - Western Alliance (WAL) is expected to report a quarterly earnings per share (EPS) of $2.02, marking a 15.4% increase year-over-year, with revenues projected at $848.1 million, reflecting an 8.5% increase compared to the same period last year [1]. Earnings Estimates - The consensus EPS estimate has been revised downward by 1.3% over the past 30 days, indicating a reassessment by analysts [2]. - Revisions to earnings projections are crucial for predicting investor behavior and are linked to short-term stock price performance [3]. Key Metrics Projections - Analysts predict a 'Net Interest Margin' of 3.4%, down from 3.6% in the same quarter last year [5]. - The estimated 'Efficiency Ratio' is 58.5%, compared to 62.3% in the same quarter of the previous year [5]. - 'Average Balance - Total interest earning assets' is forecasted to reach $79.16 billion, up from $73.87 billion year-over-year [5]. Income Projections - 'Total non-interest income' is expected to be $138.64 million, an increase from $115.20 million in the same quarter last year [6]. - 'Service charges and fees' are projected at $39.00 million, significantly higher than the $10.80 million reported a year ago [6]. - 'Net interest income' is anticipated to reach $689.27 million, compared to $656.60 million in the same quarter last year [7]. - 'Net gain on loan origination and sale activities' is expected to be $59.48 million, up from $46.80 million year-over-year [7]. - 'Other non-interest income' is projected at $15.06 million, compared to $8.10 million last year [8]. - 'Net loan servicing revenue' is expected to be $24.72 million, down from $38.10 million in the same quarter last year [8]. Stock Performance - Shares of Western Alliance have increased by 18.5% over the past month, outperforming the Zacks S&P 500 composite, which rose by 4% [8].