Texas Capital Bancshares Earnings Preview

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After beating estimates last quarter by 8 cents, Texas Capital Bancshares (NAS: TCBI) has set the standard for itself. The company will unveil its latest earnings on Wednesday. Texas Capital Bancshares is a bank holding company that currently provides commercial banking services to its customers in Texas and concentrates on middle-market commercial and high net worth customers.

What analysts say:

  • Buy, sell, or hold?: Analysts strongly back Texas Capital Bancshares, with seven of 11 rating it a buy and the remainder rating it a hold. Analysts like Texas Capital Bancshares better than competitor First Financial Bankshares overall. Wall Street has warmed to the stock over the past three months, with analysts increasing their endorsement from hold to moderate buy.
  • Revenue forecasts: On average, analysts predict $76.1 million in revenue this quarter. That would represent a rise of 21.5% from the year-ago quarter.
  • Wall Street earnings expectations: The average analyst estimate is earnings of $0.50 per share. Estimates range from $0.43 to $0.54.

What our community says:
CAPS All-Stars are solidly backing the stock with 84.6% awarding it an outperform rating. The community at large agrees with the All-Stars with 79.5% granting it a rating of outperform. Fools have embraced Texas Capital Bancshares, though the message boards have been quiet lately with only 23 posts in the past 30 days. Texas Capital Bancshares has a bullish CAPS rating of four out of five stars that is about on par with the Fool community assessment.

Management:
Texas Capital Bancshares' profit has risen year over year by an average of 83.1% over the past five quarters. Revenue has now gone up for three straight quarters.

Now let's look at how efficient management is at running the business. Traditionally, margins represent the efficiency with which companies capture portions of sales dollars. The following table shows net margins over the past four quarters.

Quarter

Q2

Q1

Q4

Q3

Net Margin

20.0%

15.3%

14.2%

11.8%

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At the time this article was published

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