Signature Bank Earnings Preview

Motley Fool Staff
Updated

Investors are on the edge of their collective seats, hoping that Signature Bank (NAS: SBNY) will top analyst expectations for the fifth consecutive quarter. The company will unveil its latest earnings on Tuesday, Jan. 24. Signature Bank is a full-service commercial bank that, through its subsidiary, offers a variety of business and personal banking products and services, as well as investment, brokerage, asset management, and insurance products and services.

What analysts say:

  • Buy, sell, or hold?: Analysts think investors should stand pat on Signature Bank with 10 of 18 analysts rating it hold. Analysts like Signature Bank better than competitor Arrow overall. Zero out of one analysts rate Arrow a buy compared to eight of 18 for Signature Bank.

  • Revenue forecasts: On average, analysts predict $129.9 million in revenue this quarter. That would represent a rise of 22.7% from the year-ago quarter.

  • Wall Street earnings expectations: The average analyst estimate is earnings of $0.84 per share. Estimates range from $0.80 to $0.88.

What our community says:
The majority of CAPS All-Stars see Signature Bank as a good bet, with 73.7% granting it an "outperform" rating. The majority of the Fools are in agreement with the All-Stars as 79.2% give it an "outperform" rating. Fools are bullish on Signature Bank, though the message boards have been quiet lately with only 14 posts in the past 30 days. Signature Bank's bearish CAPS rating of two out of five stars falls short of the Fool community sentiment.

Management:
The company's revenue has now risen for two 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

Q1

Q4

Q3

Q2

Net Margin

23.2%

22.3%

20.5%

17.9%

One final thing: If you want to keep tabs on Signature Bank movements, and for more analysis on the company, make sure you add it to your Watchlist.

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Earnings estimates provided by Zacks.

At the time thisarticle was published

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