Regional banking company Prosperity Bancshares (NYSE: PB) will be reporting earnings this Wednesday before the bell. Here’s what investors should know.
Prosperity Bancshares missed analysts’ revenue expectations by 1.2% last quarter, reporting revenues of $310.7 million, up 1.9% year on year. It was a softer quarter for the company, with a significant miss of analysts’ net interest income estimates and a slight miss of analysts’ revenue estimates.
Is Prosperity Bancshares a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Prosperity Bancshares’s revenue to grow 4.9% year on year to $317.5 million, slowing from the 8.8% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.44 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Prosperity Bancshares has missed Wall Street’s revenue estimates four times over the last two years.
Looking at Prosperity Bancshares’s peers in the regional banks segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Customers Bancorp delivered year-on-year revenue growth of 38.5%, beating analysts’ expectations by 7%, and Seacoast Banking reported revenues up 20.7%, in line with consensus estimates. Customers Bancorp traded up 7% following the results.
Read our full analysis of Customers Bancorp’s results here and Seacoast Banking’s results here.
Debates over possible tariffs and corporate tax adjustments have raised questions about economic stability in 2025. While some of the regional banks stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 2.9% on average over the last month. Prosperity Bancshares is down 3.4% during the same time and is heading into earnings with an average analyst price target of $79.07 (compared to the current share price of $63.75).
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