A Preview Of Texas Capital Bancshares's Earnings

Texas Capital Bancshares TCBI will be releasing its next round of earnings this Wednesday, July 21. For all of the relevant information, here is your guide for Wednesday's Q2 earnings announcement.

Net Income, Earnings, And Earnings Per Share

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Analysts covering Texas Capital Bancshares modeled for quarterly EPS of $1.21 on revenue of $239.45 million. In the same quarter last year, Texas Capital Bancshares reported earnings per share of $0.26 on revenue of $280.43 million.

Why Analyst Estimates And Earnings Surprises Are Important

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 analyst consensus estimate would represent a 365.38% increase in the company's earnings. Revenue would be down 14.61% from the year-ago period. Here is how the company's reported EPS has compared to analyst estimates in the past:

Stock Performance

Shares of Texas Capital Bancshares were trading at $59.22 as of July 19. Over the last 52-week period, shares are up 115.12%. Given that these returns are generally positive, long-term shareholders are probably happy going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Texas Capital Bancshares is scheduled to hold the call at 16:30:00 ET and can be accessed here.