EBC Earnings Prediction
The chart below shows how EBC performed 10 days before and after its earnings report, based on data from the past quarters. Typically, EBC sees a -0.70% change in stock price 10 days leading up to the earnings, and a -0.34% change 10 days following the report. On the earnings day itself, the stock moves by +0.16%. This data can give you a slight idea of what to expect for the next quarter's release.
EBC Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
203.38M
30.07%
32.07%
Gross Margin
--
--
--
Operating Margin
-1.65%
-105.46%
-106.69%
Net Margin
-3.04%
-107.49%
-117.78%
EPS
-0.03
-108.33%
-118.75%
No Data Available
EBC Earnings Analysis
Eastern Bankshares Inc Corporation (EBC.O) Earnings Conference Call
Positive
Top SBA Lender Recognition: Eastern Bancshares was named the number one SBA lender in Massachusetts for the 6th consecutive year, showcasing its strong position in the local market.
Wealth Management Leadership: The combined wealth management business now has over $8 billion in assets under management, making it the largest bank-owned investment advisor in Massachusetts.
Q3 Operating Net Income Growth: Operating net income for Q3 was $49.7 million, a 36% increase from the prior quarter, driven by a larger balance sheet and improved margins.
Dividend Increase Announcement: The Board approved a 9% increase in the quarterly dividend to $0.12 per share, reflecting confidence in the company's financial health and future prospects.
Share Repurchase Strategy: The company repurchased 836,000 shares of stock at an average price of $15.08, totaling $12.6 million, indicating strong capital management and commitment to shareholder value.
Negative
Q3 Net Loss Analysis: GAAP net loss of $6,000,000 in Q3 due to non-recurring merger items, including a $40,900,000 reserve expense and $30,500,000 in M&A expenses.
Non-Performing Loans Increase: Non-performing loans increased to $125,000,000, primarily driven by PCD loans from Cambridge, indicating potential asset quality issues.
Loan Loss Allowance Increase: The allowance for loan losses increased to 1.4%, reflecting a conservative approach to potential credit challenges, particularly in the commercial real estate sector.
Increased Operational Costs: Operating non-interest expense rose to $159,800,000, with a significant increase in salaries and benefits by $15,400,000 due to the addition of Cambridge colleagues, indicating higher operational costs post-merger.
Loan and Deposit Challenges: Organic growth in loans was essentially flat, and deposits declined due to seasonality, suggesting challenges in maintaining growth momentum post-merger.
EBC FAQs
How does EBC typically perform around its earnings report dates?
Is Earnings call transcript: Eastern Bankshares Q3 2024 results show mixed signals positive or negative?
How can historical earnings data help predict future stock performance?
EBC Earning Call Sentiment
Earnings call transcript: Eastern Bankshares Q3 2024 results show mixed signals
EBC.O
-2.17%Positive
The earnings call presented mixed signals: strong operational net income growth and a dividend increase were positive, but the GAAP net loss due to merger expenses and increased non-performing loans were concerning. The market may remain cautious due to competitive pressures and operational cost increases. The Q&A revealed some management uncertainty, particularly around expenses and non-performing loans. Given the company's market cap, the stock is likely to remain stable, with potential small fluctuations, resulting in a neutral prediction.
