Shares of Western Alliance (WAL) rallied 1.7% in the extended trading session on Thursday after the company reported that its Q2 earnings and revenues surpassed analyst’s expectations.
Don't Miss Our Christmas Offers:
- Discover the latest stocks recommended by top Wall Street analysts, all in one place with Analyst Top Stocks
- Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter
Quarterly earnings of $2.17 came above the Street’s expectations of $1.95 and increased significantly from $0.93 reported in the same quarter last year.
Also, the company reported revenue of $506.5 million, up 58.4% year-over-year. It surpassed consensus estimates of $492.1 million. Net interest income climbed 24.2% to $370.5 million on 68 basis points contraction in net interest margin.
In Q2, Western Alliance recorded reversal of credit loss provisions totaling $14.5 million compared to a provision of $92 million in the prior year’s quarter. As of June 30, the company held loans for investment worth $5 billion, up 20.1%, while deposits increased 52.2% to $14.4 billion. (See Western Alliance stock chart on TipRanks)
On July 14, RBC Capital analyst Jon Arfstrom maintained a Buy rating on the stock with a price target of $110 (upside potential of 12.7% from current levels). The analyst anticipates Western Alliance to report earnings per share of $1.91 in Q3.
Consensus among analysts is a Strong Buy based on 7 unanimous Buys. The average Western Alliance price target stands at $118.57, implying upside potential of 21.5% from current levels.
Related News:
Wells Fargo Q2 Earnings & Estimates Surpass Estimates
Blackstone Strikes Life & Retirement Business Buyout Deal with AIG
Citigroup’s Q2 Results Beat Expectations
