SVB Financial Group Earnings Preview

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SVB Financial Group (NAS: SIVB) beat estimates by $0.80 last quarter and investors are hoping it can beat them again. The company will unveil its latest earnings on Thursday, Oct. 20. SVB Financial Group is a financial services company, as well as a bank holding company and financial holding company. Through its various subsidiaries and divisions, it offers a variety of banking and financial products and services.

What analysts say:

  • Buy, sell, or hold?: Analysts think investors should stand pat on SVB Financial Group with 10 of 17 analysts rating it hold. Analysts don't like SVB Financial Group as much as competitor TCF overall. Eight out of 17 analysts rate TCF a buy compared to seven of 17 for SVB Financial Group. While analysts still rate the stock a Hold, they are a little more optimistic about it compared to three months ago.
  • Revenue Forecasts: On average, analysts predict $184.7 million in revenue this quarter. That would represent a decline of 4.1% from the year-ago quarter.
  • Wall Street Earnings Expectations: The average analyst estimate is earnings of $0.77 per share. Estimates range from $0.59 to $0.88.

What our community says:
The majority of CAPS All-Stars see SIVB as a good bet, with 63.6% awarding it an "outperform" rating. The majority of Fools are in agreement with the All-Stars, for 69.8% give it an "outperform" rating. Fools are gung-ho about SVB Financial Group, though the message boards have been quiet lately with only 19 posts in the past 30 days. SVB Financial Group's bearish CAPS rating of two out of five stars falls short of the Fool community sentiment.

Management:
SVB Financial Group's profit has risen year over year by an average of 82.5% over the past five 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. 

QuarterQ2Q1Q4Q3
Net Margin24.9%14.7%9.2%18.6%
One final thing: If you want to keep tabs on SVB Financial Group movements, and for more analysis on the company, make sure you add it to your Watchlist.

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