Investors hope Texas Capital Bancshares (Nasdaq: TCBI) will top analyst estimates once again after beating predictions by $0.06 cents in the previous quarter. The company will unveil its latest earnings on Wednesday, Jan. 25. Texas Capital Bancshares is a bank holding company that currently provides commercial banking services to its customers in Texas and concentrates on middle-market, commercial, and high net-worth customers.

What analysts say:

  • Buy, sell, or hold?: Analysts strongly back Texas Capital Bancshares, with seven of 13 rating it a buy and the remainder rating it a hold. Analysts like Texas Capital Bancshares better than competitor First Financial Bankshares overall. While analysts still rate the stock a moderate buy, they are a little more optimistic about it compared to three months ago.
  • Revenue Forecasts: On average, analysts predict $82.5 million in revenue this quarter. That would represent a rise of 25% from the year-ago quarter.
  • Wall Street Earnings Expectations: The average analyst estimate is earnings of $0.61 per share. Estimates range from $0.56 to $0.65.

What our community says:
CAPS All-Stars are solidly behind the stock with 90.9% awarding it an "outperform" rating. The community at large concurs with the All-Stars with 76.9% assigning it a rating of "outperform." Fools are gung-ho about Texas Capital Bancshares, though the message boards have been quiet lately with only 23 posts in the past 30 days. Texas Capital Bancshares has a CAPS rating of zero out of five stars.

Management:
Texas Capital Bancshares' profit has risen year over year by an average of 95.3% over the past five quarters. Revenue has now gone up for three straight 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 23.9% 20.0% 15.3% 14.2%

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