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Market Overview

Earnings Preview for Spirit of Texas Bancshare


On Monday, January 25, Spirit of Texas Bancshare (NASDAQ:STXB) will report its last quarter's earnings. Here is Benzinga's preview of the company's release.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and especially 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 equals to net income divided by the number of shares outstanding.

Earnings And Revenue

Wall Street expects EPS of $0.41 and sales around $32.44 million. In the same quarter last year, Spirit of Texas Bancshare reported EPS of $0.28 on revenue of $27.28 million.

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

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.

The Wall Street consensus estimate for earnings would represent a 46.43% increase for the company. Sales would be have grown 18.92% from the same quarter last year. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020
EPS Estimate 0.30 0.29 0.26 0.39
EPS Actual 0.38 0.44 0.26 0.28
Revenue Estimate 29.04 M 27.88 M 26.52 M 26.09 M
Revenue Actual 31.03 M 28.62 M 26.51 M 27.28 M

Stock Performance

Shares of Spirit of Texas Bancshare were trading at $17.57 as of January 21. Over the last 52-week period, shares are down 15.26%. Given that these returns are generally negative, long-term shareholders are likely unhappy going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Spirit of Texas Bancshare is scheduled to hold the call at 10:00:00 ET and can be accessed here.


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Posted-In: BZI-EPEarnings