Market Overview

Earnings Preview: Banc of California

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On Thursday, October 22, Banc of California (NYSE: BANC) will release its latest earnings report. Decipher the announcement with Benzinga's help.

Net Income, Earnings, And Earnings Per Share

Earnings and earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equates to net income divided by the number of shares outstanding.

Earnings And Revenue

Analysts predict Banc of California will report earnings of $0.33 per share on revenue of $59.06 million. In the same quarter last year, Banc of California reported a loss per share of $0.45 on revenue of $58.91 million.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

If the company were to match the consensus estimate when it reports Thursday, earnings would be up 173.33%. Sales would be have grown 0.25% from the same quarter last year. Here is how the company's EPS has stacked up against analyst estimates in the past:

Quarter Q2 2020 Q1 2020 Q4 2020 Q3 2019
EPS Estimate -0.39 0.04 0.17 -0.34
EPS Actual -0.44 -0.19 0.20 -0.45
Revenue Estimate 55.34 M 56.73 M 58.56 M 61.88 M
Revenue Actual 55.31 M 51.86 M 56.66 M 58.91 M

Stock Performance

Shares of Banc of California were trading at $11.36 as of October 20. Over the last 52-week period, shares are down 18.1%. Given that these returns are generally negative, long-term shareholders are likely unhappy going into this earnings release.

 

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