Earnings Preview For PacWest Banc

PacWest Banc PACW will be releasing its next round of earnings this Monday, July 19. For all of the relevant information, here is your guide for Monday's Q2 earnings announcement.

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

Analysts expect PacWest Banc earnings of $0.97 per share. Revenue will likely be around $304.68 million, according to the consensus estimate. In the same quarter last year, PacWest Banc reported earnings per share of $0.28 on sales of $293.14 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.

If the company were to report earnings in line when it publishes results Monday, quarterly profit would be up 246.43%. Revenue would be have grown 3.94% from the same quarter last year. Here is how the PacWest Banc's reported EPS has stacked up against analyst estimates in the past:

Stock Performance

Shares of PacWest Banc were trading at $39.33 as of July 15. Over the last 52-week period, shares are up 116.22%. Given that these returns are generally positive, long-term shareholders can be satisfied going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. PacWest Banc is scheduled to hold the call at 08:00:00 ET and can be accessed here.