WBS Earnings Prediction
The chart below shows how WBS performed 10 days before and after its earnings report, based on data from the past quarters. Typically, WBS sees a -6.24% change in stock price 10 days leading up to the earnings, and a -0.78% change 10 days following the report. On the earnings day itself, the stock moves by +1.52%. This data can give you a slight idea of what to expect for the next quarter's release.
WBS Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
653.59M
4.03%
-0.30%
Gross Margin
--
--
--
Operating Margin
39.34%
11.51%
-1.06%
Net Margin
27.20%
-7.83%
-7.61%
EPS
1.02
-2.86%
-7.27%
No Data Available
WBS Earnings Analysis
Webster Financial Corp Corporation (WBS.N) Earnings Conference Call
Positive
Tangible Common Equity Growth: Adjusted return on tangible common equity increased to 17.7% in Q4 2024, up from 17.5% for the full year, indicating strong profitability.
Deposit Growth Strategies: Total deposits grew by $239 million in Q4 2024, with DDA balances increasing by $75 million for the second consecutive quarter, showcasing effective deposit growth strategies.
Net Interest Income Increase: Net interest income rose by $19 million, or 3.2%, in Q4 2024, driven by balance sheet growth and a modest increase in the net interest margin to 3.39%.
Noninterest Income Increase: Noninterest income increased by $16 million over the prior quarter to $109 million, reflecting strong underlying business activity and a positive swing in derivative valuation adjustments.
Loan Growth Performance: Loan growth was recorded at $558 million, or 1.1%, linked quarter, primarily driven by increases in C&I and residential lending, positioning the bank for balanced growth moving forward.
Negative
Credit Quality Concerns: Net charge-offs totaled just over $60 million in the quarter, with 60% attributed to traditional office-related or health care services credits, indicating ongoing credit quality issues.
Loan Portfolio Yield Decline: The loan portfolio yield decreased by 26 basis points, primarily due to the impact of 100 basis points of Fed cuts since September, reflecting pressure on interest income.
Rising Operational Costs: Adjusted expenses increased by $12 million over the prior quarter, driven by higher performance-based incentive accruals and seasonal increases in benefit expenses, indicating rising operational costs.
Tangible Book Value Decline: The tangible book value per share declined to $32.95 from $33.26, reflecting the impact of accumulated other comprehensive income losses, signaling potential asset valuation concerns.
Efficiency Ratio Analysis: The efficiency ratio remained at 45%, suggesting that while revenues increased, cost management remains a challenge as expenses continue to rise.
WBS FAQs
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WBS Earning Call Sentiment
Webster Financial Corporation (WBS) Q4 2024 Earnings Call Transcript
1.0x
00:00
00:00
WBS.N
1.17%Positive
The earnings call summary presents a balanced view. While there are positive aspects like expected loan and deposit growth, strong capital ratios, and potential share buybacks, there are also concerns about regulatory, credit, and competitive risks. The Q&A highlights some uncertainties, particularly regarding regulatory changes and credit risks. The mixed guidance and economic challenges suggest a neutral stock price movement. Without a market cap, the impact remains uncertain, but the absence of strong catalysts or severe negatives points to a neutral sentiment.
