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Savings & Loan Stocks' Earnings on Jul 27: WSFS, ISBC, CFFN

The earnings season is in full swing and investors are keeping a close watch on the performance of companies. Results reported by banks so far look decent.

The reasonably good performance of the finance stocks depicts an improving economy and rising interest rates. Further, demand for commercial & industrial, and commercial real estate loans remained strong during the quarter. So, overall revenues are expected to witness an improvement during the quarter.

Notably, per the Earnings Preview, for the overall Finance sector earnings growth in Apr-Jun 2017 quarter is expected to be 12.9%.

Our quantitative model offers some insights into stocks that are about to report earnings. Per the model, in order to be confident of an earnings beat, a stock needs to have the right combination of the two key ingredients – a positive Earnings ESP and a favorable Zacks Rank – Zacks Rank #3 (Hold) or better. You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Let’s check how the following savings and loan companies (part of the broad Finance sector), scheduled to report earnings tomorrow are expected to perform.

WSFS Financial Corp. WSFS is scheduled to report second-quarter 2017 results after the market closes. Its Zacks Consensus Estimate of 30 cents remained stable over the past 30 days. Moreover, the figure depicts a year-over-year increase of 6.9%.

However, we cannot conclusively predict an earnings beat because the company has an Earnings ESP of 0.00% along with a Zacks Rank #3.

The company delivered a positive earnings surprise in just one of the trailing four quarters, with an average negative surprise of 3.6%.

Investors Bancorp Inc. ISBC is also set to report its second-quarter 2017 results after the market closes. Its Zacks Consensus Estimate of 15 cents remained stable over the past 30 days.

An Earnings ESP of 0.00% along with a Zacks Rank #4 (Sell) reduces the chance of it witnessing an earnings beat this quarter.

Notably, the company delivered an average positive earnings surprise of 4.9% in the trailing four quarters as depicted in the chart below:

Investors Bancorp, Inc. Price and EPS Surprise

 

Investors Bancorp, Inc. Price and EPS Surprise | Investors Bancorp, Inc. Quote

Capitol Federal Financial, Inc. CFFN is set to report fiscal third-quarter 2017 numbers before the opening bell. The Zacks Consensus Estimate of 16 cents remained stable over the past 30 days. This reflects growth of 6.7% in the company’s earnings year over year.

Its Zacks Rank #3 and Earnings ESP of 0.00% make it difficult to conclusively predict an earnings beat for the quarter.  

Nevertheless, the company delivered an average positive earnings surprise of 0.1% in the trailing four quarters as depicted in the chart below:

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Capitol Federal Financial, Inc. (CFFN): Free Stock Analysis Report
 
WSFS Financial Corporation (WSFS): Free Stock Analysis Report
 
Investors Bancorp, Inc. (ISBC): Free Stock Analysis Report
 
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