Prosperity Bancshares (PB) Q2 Earnings: What To Expect

Regional banking company Prosperity Bancshares (NYSE:PB) will be reporting results this Wednesday morning. Here’s what you need to know.

Prosperity Bancshares missed analysts’ revenue expectations by 0.6% last quarter, reporting revenues of $306.7 million, up 10.7% year on year. It was a slower quarter for the company, with a slight miss of analysts’ net interest income estimates and EPS in line with analysts’ estimates.

Is Prosperity Bancshares a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Prosperity Bancshares’s revenue to grow 3.2% year on year to $314.4 million, slowing from the 10.4% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.41 per share.

Heading into earnings, analysts covering the company have grown increasingly bullish with revenue estimates seeing 3 upward revisions over the last 30 days (we track 8 analysts). Prosperity Bancshares has missed Wall Street’s revenue estimates three times over the last two years.

Looking at Prosperity Bancshares’s peers in the regional banks segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Texas Capital Bank delivered year-on-year revenue growth of 15.2%, beating analysts’ expectations by 2.7%, and Nicolet Bankshares reported revenues up 12.7%, topping estimates by 4.4%. Texas Capital Bank traded up 4.8% following the results while Nicolet Bankshares was also up 7.8%.

Read our full analysis of Texas Capital Bank’s results here and Nicolet Bankshares’s results here.

There has been positive sentiment among investors in the regional banks segment, with share prices up 7.8% on average over the last month. Prosperity Bancshares is up 4.9% during the same time and is heading into earnings with an average analyst price target of $82.54 (compared to the current share price of $72.48).

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