WAL Earnings Prediction
The chart below shows how WAL performed 10 days before and after its earnings report, based on data from the past quarters. Typically, WAL sees a -3.22% change in stock price 10 days leading up to the earnings, and a +0.82% change 10 days following the report. On the earnings day itself, the stock moves by +0.13%. This data can give you a slight idea of what to expect for the next quarter's release.
WAL Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
700.90M
30.94%
0.47%
Gross Margin
--
--
--
Operating Margin
37.01%
21.82%
3.32%
Net Margin
30.95%
12.02%
8.07%
EPS
1.95
46.62%
8.33%
No Data Available
WAL Earnings Analysis
Western Alliance Bancorp Corporation (WAL.N) Earnings Conference Call
Positive
Strong Earnings Performance: Solid earnings with Q4 EPS of $1.95 and full year EPS of $7.09, reflecting a 21% increase in net revenue from the prior year.
Net Revenue Growth: Pre-provision net revenue grew 12% linked quarter unannualized, demonstrating strong performance in credit and deposit platforms.
Non-Interest Income Increase: Non-interest income rose by $46 million quarter over quarter to $172 million, driven by higher mortgage banking revenue and commercial banking fees.
Deposit Growth Highlights: Deposits grew by $11 billion in 2024, primarily in money market accounts and ECR-related non-interest bearing accounts, showcasing diversified strength across the franchise.
Tangible Book Value Increase: Tangible book value per share increased 12% year over year to $52.27, reflecting solid earnings growth despite AOCI impacts.
Negative
Net Interest Income Decline: Net interest income decreased by $30 million in Q4, falling to $667 million due to lower yields on interest-earning assets and flat average earning balances.
Muted Loan Growth: Loan growth was muted, with only $330 million added during the quarter, significantly lower than expectations, and a decline in construction loans by $248 million.
Provision Expense Increase: Provision expense increased to $60 million, driven by $34 million in net charge-offs and an incremental qualitative adjustment on the commercial real estate (CRE) portfolio.
Asset Quality Deterioration: Criticized assets rose by $61 million in Q4, with nonperforming assets as a percentage of total assets increasing to 0.65%, indicating a deterioration in asset quality.
Tangible Book Value Growth: Tangible book value per share growth was suppressed by a negative AOCI charge in Q4, despite a year-over-year increase of 12% to $52.27, reflecting ongoing challenges in the market.
WAL FAQs
How does WAL typically perform around its earnings report dates?
Is Western Alliance Bancorp (WAL) Q4 2024 Earnings Call Summary positive or negative?
How can historical earnings data help predict future stock performance?
WAL Earning Call Sentiment
Earnings call transcript: Western Alliance Q4 2024 beats EPS forecast
WAL.N
2.27%Positive
The earnings report presents a mixed picture. Positive aspects include EPS and net income growth, improved tangible book value, and decreased non-interest expenses. However, concerns arise from declining net interest income, increased criticized assets, and ongoing regulatory costs. The Q&A revealed management's cautious stance on capital deployment and reliance on economic conditions for earnings growth. Despite some positive financial metrics, uncertainties and potential risks balance the sentiment, leading to a neutral stock price prediction.
