Zions and Western Alliance report Q3: what analysts expect this week

what happened

According to StockStory.org, Zions Bancorporation will report third-quarter results on Monday after the market closes. Last quarter the bank posted revenue of $878 million, up 4.9% year on year, but it fell short of analyst expectations. The market now expects revenue growth of 2.7% year on year, slower than the 9.3% gain recorded a year earlier.

Western Alliance Bancorporation is scheduled to report on Monday afternoon. Its revenue last quarter reached $986.3 million, up 18.2% year on year, in line with forecasts, but earnings per share missed estimates by a wide margin. Analysts expect revenue to rise 7.3% year on year this quarter.

StockStory.org also points to peer results. Independent Bank grew revenue 7.4% and beat expectations by 0.6%, while Regions Financial reported revenue up 2.6%, also 0.6% above estimates. Over the past month regional bank shares have fallen 5.1% on average, with Zions down 2.9% and Western Alliance down 4.8%.

why it matters

Regional bank earnings matter for the outlook on U.S. lending and net interest income at a time of elevated rates. Weak results from a few banks can weigh on the whole group, so investors watch revenue and earnings trends as a read on the sector.

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