Trustmark Earnings Preview

Motley Fool Staff
Updated

After beating estimates last quarter by $0.01, Trustmark (NAS: TRMK) has set the standard for itself. The company will unveil its latest earnings Tuesday. Trustmark is a bank holding company that, through its subsidiaries, operates as a financial services organization.

What analysts say:

  • Buy, sell, or hold?: Analysts think investors should stand pat on Trustmark with five of nine analysts rating it hold. Analysts like Trustmark better than competitor BancorpSouth overall. One out of 11 analysts rate BancorpSouth a buy compared with three of nine for Trustmark. While analysts still rate the stock a hold, they are a little more optimistic about it compared with three months ago.

  • Revenue forecasts: On average, analysts predict $130.6 million in revenue this quarter. That would represent a rise of 0% from the year-ago quarter.

  • Wall Street earnings expectations: The average analyst estimate is earnings of $0.41 per share. Estimates range from $0.38 to $0.45.

What our community says:
The majority of CAPS All-Stars see Trustmark as a good bet, with 73.7% awarding it an "outperform" rating. The majority of the Fools are in agreement with the All-Stars, as 71.4% give it an "outperform" rating. Fools have embraced Trustmark, though the message boards have been quiet lately with only nine posts in the past 30 days. Despite the majority sentiment in favor of Trustmark, the stock has a middling CAPS rating of three out of five stars.

Management:
Trustmark's profit has risen year over year by an average of 7.6% over the past five quarters. Revenue has fallen for the past three 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

19.2%

21.7%

17.9%

18%

One final thing: If you want to keep tabs on Trustmark 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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