Coastal Financial (CCB) Q3 earnings: what to expect

What happened

Coastal Financial will report quarterly earnings before the market opens tomorrow. Last quarter, revenue was $139.4 million, up 36.4% from a year earlier, but the company missed analysts' revenue, earnings per share and tangible book value per share estimates.

Confirmed

Global impact / market context

Analysts expect revenue to grow 35.6% this quarter, so the report will show whether the bank can turn strong sales growth into profit that meets forecasts, which matters because last quarter's profit and book value misses hurt credibility.

Analyst inference

Other regional banks have already reported results, giving a comparison for expectations. OceanFirst revenue rose 79.9% and Byline Bancorp rose 4.6%, both beating estimates, so investors may judge Coastal against these peer outcomes.

Analyst inference

What to watch

1. Watch whether reported revenue meets the 35.6% year-on-year growth analysts expect, after last quarter's revenue fell short of estimates. Confirmed
2. Watch earnings per share and tangible book value per share, which means the accounting value of assets minus liabilities excluding intangible items, after both missed estimates last quarter. Proposed
3. Watch whether results resemble peer banks that beat estimates, since strong peer reports could raise expectations for Coastal Financial's own revenue and profit. Analyst inference

Evidence

• stockstory.org