OFG Bancorp and Pinnacle Financial report earnings Wednesday: what to expect

what happened

According to StockStory, Puerto Rican financial services company OFG Bancorp will publish quarterly results on Wednesday before the market opens, while regional bank Pinnacle Financial Partners (NASDAQ: PNFP) reports the same day after the close.

Last quarter OFG beat revenue expectations, with revenue of $190.3 million, up 4.4% year on year. Analysts expect revenue growth of 1.7% year on year, slower than the 5.6% gain a year earlier. Pinnacle met revenue forecasts last quarter with $1.24 billion in revenue, and the market expects growth of 129% year on year, against 17% a year earlier.

Regional banks have lagged overall, with their shares down 5.7% on average over the last month. OFG's stock was unchanged over the same period, while Pinnacle fell 2.7%. The average analyst price target is $56.75 for OFG against a share price of $52.17, and $118.86 for Pinnacle against $93.90.

why it matters

Quarterly reports from regional banks matter for the whole sector, because net interest income and margins drive their profits. Peers that already reported, Washington Trust Bancorp and Independent Bank, posted revenue above forecasts, which sets a reference point for the rest. OFG has missed revenue estimates several times over the last two years, so its result may be less predictable.

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