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PacWest Bancorp Earnings Preview

PacWest Bancorp (Nasdaq: PACW  ) will look to avoid missing estimates for the consecutive quarter when its earnings are released. The company will unveil its latest earnings on Monday, July 11. PacWest Bancorp offers a range of banking products and services through its subsidiary, Pacific Western Bank.

What analysts say:

  • Buy, sell, or hold?: Analysts think investors should stand pat on PacWest Bancorp with eight of 12 analysts rating it hold. Analysts don't like PacWest Bancorp as much as competitor Nara Bancorp overall. Six out of seven analysts rate Nara Bancorp a buy compared to three of 12 for PacWest Bancorp. Analysts still rate the stock a Hold, but they are a bit more wary about it compared to three months ago.
  • Revenue Forecasts: On average, analysts predict $70.6 million in revenue this quarter. That would represent a rise of 1.3% from the year-ago quarter.
  • Wall Street Earnings Expectations: The average analyst estimate is earnings of $0.27 per share. Estimates range from $0.11 to $0.33.

What our community says:
The majority of CAPS All-Stars see PACW as a good bet, with 65.7% giving it an "outperform" rating. The community is divided on the stock with 47.9% Fools awarding it an "outperform" rating and 52.1% an "underperform" rating. Fools are gung-ho about PacWest Bancorp, though the message boards have been quiet lately with only 40 posts in the past 30 days. PacWest Bancorp's bearish CAPS rating of one out of five stars falls short of the Fool community sentiment.

Management:
PacWest Bancorp's income has fallen year over year by an average of 59.4%. Revenue has fallen for the past three quarters.

Now let's look at how efficient management is at running the business. Traditionally, margins represent the efficiency with which companies capture portions of sales dollars. The following table shows gross, operating, and net margins over the past four quarters. 

Quarter Q1 Q4 Q3 Q2
Net Margin 13.2% -9.2% 4.1% 3.4%

One final thing: If you want to keep tabs on PacWest Bancorp movements, and for more analysis on the company, make sure you add it to your Watchlist.

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DocumentId: 1516384, ~/Articles/ArticleHandler.aspx, 5/26/2012 12:30:05 PM

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Related Tickers

5/25/2012 4:00 PM
PACW $22.83 Down -0.10 -0.44%
PacWest Bancorp CAPS Rating: *

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