International Bancshares Earnings Preview

International Bancshares (Nasdaq: IBOC  ) came in right in line with the Street's expectations last quarter, but investors are hoping that it will beat them this quarter. The company will unveil its latest earnings on Monday, Feb. 27. International Bancshares is a bank holding company that, 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. Six out of 14 analysts rate Texas Capital Bancshares a buy compared to zero out of one for International Bancshares. That rating hasn't budged in three months as analysts have remained unchanged in their opinion of the stock.
  • Revenue forecasts: On average, analysts predict $122.3 million in revenue this quarter. That would represent a decline of 26.7% from the year-ago quarter.
  • Wall Street earnings expectations: The average analyst estimate is earnings of $0.30 per share.

What our community says:
CAPS All-Stars are strongly supporting the stock, with 77% giving it an outperform rating. The community at large is in line with the All-Stars, with 75.1% awarding it a rating of outperform. International Bancshares' bearish CAPS rating of one out of five stars falls short of the Fool community sentiment.

Management:
International's income has fallen year over year by an average of 6.5% 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

Q3

Q2

Q1

Q4

Net Margin

19.8%

21.0%

21.6%

18.7%

For all our International-specific analysis, including earnings and beyond, add International to My Watchlist.

The Motley Fool owns shares of International Bancshares. Motley Fool newsletter services have recommended buying 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.

Earnings estimates provided by Zacks.

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