Banking services provider Coastal Financial (NASDAQ: CCB) will be reporting earnings this Thursday morning. Here’s what to look for.
Coastal Financial missed analysts’ revenue expectations last quarter, reporting revenues of $121.3 million, up 9.1% year on year. It was a softer quarter for the company, with a significant miss of analysts’ EPS estimates and a miss of analysts’ tangible book value per share estimates.
Is Coastal Financial a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Coastal Financial’s revenue to grow 42.2% year on year, a reversal from the 1.3% decrease it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings.
Looking at Coastal Financial’s peers in the regional banks segment, some have already reported their Q2 results, giving us a hint as to what we can expect. OFG Bancorp delivered year-on-year revenue growth of 4.5%, beating analysts’ expectations by 3.9%, and Hilltop Holdings reported revenues up 7.5%, topping estimates by 3.4%. OFG Bancorp traded up 4.2% following the results while Hilltop Holdings was also up 3%.
Read our full analysis of OFG Bancorp’s results here and Hilltop Holdings’s results here.
There has been positive sentiment among investors in the regional banks segment, with share prices up 2.2% on average over the last month. Coastal Financial is down 5.1% during the same time and is heading into earnings with an average analyst price target of $103.75 (compared to the current share price of $73).
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