PrivateBancorp Earnings Preview

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PrivateBancorp (NAS: PVTB) will try to beat its earnings estimates for the fifth consecutive quarter. The company will unveil its latest earnings on Tuesday, Jan. 24. PrivateBancorp, through its PrivateBank subsidiaries, provides customized business and personal financial services to middle-market commercial and commercial real estate companies as well as business owners, executives, and entrepreneurs.

What analysts say:

  • Buy, sell, or hold?: Analysts think investors should stand pat on PrivateBancorp, with 11 out of 14 analysts rating it hold. Analysts don't like PrivateBancorp as much as competitor First Midwest Bancorp overall. Six out of 11 analysts rate First Midwest Bancorp a buy compared to three out of 14 for PrivateBancorp. 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 $122.1 million in revenue this quarter. That would represent a decline of 9.7% from the year-ago quarter.
  • Wall Street earnings expectations: The average analyst estimate is earnings of $0.10 per share. Estimates range from $0.06 to $0.15.

What our community says:
CAPS All-Stars are solidly backing the stock, with 76.2% awarding it an outperform rating. The community at large backs the All-Stars, with 79.4% granting it a rating of outperform. Fools are keen on PrivateBancorp and haven't been shy with their opinions lately, logging 136 posts in the past 30 days. PrivateBancorp's bearish CAPS rating of two out of five stars falls short of the Fool community sentiment.

Management:
PrivateBancorp's income has fallen year over year by an average of 3.5% over the past five quarters. Revenue has fallen in the past two 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

Q3

Q2

Q1

Q4

Net Margin

9.2%

6.3%

7.4%

7.6%

For all our PrivateBancorp-specific analysis, including earnings and beyond, add PrivateBancorp to My Watchlist.

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Earnings estimates provided by Zacks.

At the time this article was published

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