International Bancshares Earnings Preview

Investors hope International Bancshares (Nasdaq: IBOC  ) will top analyst estimates once again after beating predictions by $0.01 in the previous quarter. The company will unveil its latest earnings on Tuesday, Nov. 8. International Bancshares is a bank holding company, which, through its bank subsidiaries -- IBC, Commerce Bank, IBC-Zapata, and IBC-Brownsville -- is engaged in the business of banking.

What analysts say:

  • Buy, sell, or hold?: Analysts don't like International Bancshares as much as competitor Texas Capital Bancshares overall. Seven out of 11 analysts rate Texas Capital Bancshares a buy compared to zero of one for International Bancshares. International's rating hasn't changed over the past three months.
  • Revenue forecasts: On average, analysts predict $130 million in revenue this quarter. That would represent a decline of 2.4% from the year-ago quarter.
  • Wall Street earnings expectations: The average analyst estimate is earnings of $0.40 per share.

What our community says:
The majority of CAPS All-Stars see IBOC as a good bet, with 73.5% awarding it an outperform rating. The majority of the Fools are in agreement with the All-Stars, as 78% give it an outperform rating. Fools are bullish on International and haven't been shy with their opinions lately, logging 110 posts in the past 30 days. International's bearish CAPS rating of one out of five stars falls short of the Fool community sentiment.

Management:
International Bancshares' income has fallen year over year by an average of 6.7% over the past five quarters. 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 net margins over the past four quarters.

Quarter

Q2

Q1

Q4

Q3

Net Margin

21%

21.6%

18.7%

20.8%

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The Motley Fool owns shares of International Bancshares. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


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