Texas Capital Bancshares Earnings Preview

Before you go, we thought you'd like these...
Before you go close icon

Investors hope Texas Capital Bancshares (NAS: TCBI) will top analyst estimates once again after beating predictions by $0.06 cents in the previous quarter. The company will unveil its latest earnings on Wednesday, Jan. 25. 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 13 rating it a buy and the remainder rating it a hold. Analysts like Texas Capital Bancshares better than competitor First Financial Bankshares overall. While analysts still rate the stock a moderate buy, they are a little more optimistic about it compared to three months ago.
  • Revenue Forecasts: On average, analysts predict $82.5 million in revenue this quarter. That would represent a rise of 25% from the year-ago quarter.
  • Wall Street Earnings Expectations: The average analyst estimate is earnings of $0.61 per share. Estimates range from $0.56 to $0.65.

What our community says:
CAPS All-Stars are solidly behind the stock with 90.9% awarding it an "outperform" rating. The community at large concurs with the All-Stars with 76.9% assigning it a rating of "outperform." Fools are gung-ho about 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 CAPS rating of zero out of five stars.

Management:
Texas Capital Bancshares' profit has risen year over year by an average of 95.3% 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. 

QuarterQ3Q2Q1Q4
Net Margin23.9%20.0%15.3%14.2%

We can help you keep tabs on your companies with My Watchlist, our free, personalized service. Add Texas Capital Bancshares now.

At the time this article was published Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners