Northwest Bancshares Earnings: What To Look For From NWBI

Regional banking company Northwest Bancshares (NASDAQ:NWBI) will be reporting results this Tuesday after market hours. Here’s what to expect.

Northwest Bancshares beat analysts’ revenue expectations by 9.9% last quarter, reporting revenues of $156.2 million, up 19% year on year. It was a stunning quarter for the company, with a solid beat of analysts’ EPS and net interest income estimates.

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

This quarter, analysts are expecting Northwest Bancshares’s revenue to grow 51% year on year to $148 million, a reversal from the 29.2% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.28 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Northwest Bancshares has missed Wall Street’s revenue estimates three times over the last two years.

Looking at Northwest Bancshares’s peers in the thrifts & mortgage finance segment, some have already reported their Q2 results, giving us a hint as to what we can expect. PennyMac Financial Services’s revenues decreased 7.1% year on year, missing analysts’ expectations by 19.8%, and Ladder Capital reported a revenue decline of 21.4%, in line with consensus estimates. PennyMac Financial Services traded down 7.5% following the results while Ladder Capital’s stock price was unchanged.

Read our full analysis of PennyMac Financial Services’s results here and Ladder Capital’s results here.

There has been positive sentiment among investors in the thrifts & mortgage finance segment, with share prices up 4.3% on average over the last month. Northwest Bancshares is down 1.6% during the same time and is heading into earnings with an average analyst price target of $13.83 (compared to the current share price of $12.57).

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