Provident Financial Services (PFS) to report earnings tomorrow: here is what to expect

What happened

Provident Financial Services, a regional bank, will report earnings tomorrow after market hours. Last quarter it reported $235 million in revenue, up 9.7% year on year, and beat analysts' estimates for revenue, net interest income and earnings per share.

Confirmed

Global impact / market context

The market expects revenue to grow 7.7% this quarter, faster than the 5.3% increase a year earlier. Because the bank has missed revenue estimates several times over two years, the results will show whether profit per sale and lending income are holding up.

Analyst inference

Analysts reconfirmed their estimates over the last 30 days, suggesting they expect the business to stay the course. Among regional bank peers, Byline Bancorp reported 4.6% revenue growth, beating expectations by 3.7%, which gives a reference point for how lending conditions are trending.

Analyst inference

What to watch

1. Last quarter's revenue of $235 million rose 9.7% year on year, with narrow beats on net interest income, which is the gap between interest earned on loans and interest paid on deposits, and on earnings per share. Confirmed
2. Watch whether revenue meets the expected 7.7% year-on-year growth, and whether the bank finally clears Wall Street's revenue estimate after multiple misses over the last two years. Proposed
3. Compare the results with Byline Bancorp's 4.6% revenue growth and 3.7% beat, since similar peer results can signal whether costs, lending income and cash available are improving across regional banks. Analyst inference

Evidence

• stockstory.org