Q4 Earnings Preview for Wintrust Financial (WTFC)

in EARNINGS/INVESTING IDEAS by

Wintrust Financial Corporation (NASDAQGS:WTFC) is scheduled to report Q4 earnings results on January 21, 2019, after the market closes for trading. Management plan to host a conference call on Wednesday, January 22, 2020, at 10:00 a.m. (CT) to discuss the results. You can find the dial-in details here.

The company is expected to report earnings of $1.56/share on revenue of $378.8 million after markets close for trading. The consensus earnings per share (EPS) of $1.56/share is based on a poll of 12 analysts and represents a growth of 2.1% over the same quarter last year when the company reported earnings of $1.53/share.

The revenue forecast of $378.8 million based on a poll of 9 analysts implies a year-over-year (YoY) growth of 14.5%. Last year the company reported $331 million in revenue for the quarter.

Expected to report EPS growth of $0.03/share for Q4, 2019
Metric Expected Prior Year YoY Change
Revenue $378.80 $330.97 14.5%
EPS $1.56 $1.53 2.1%

Earnings Call Trends

Historically, management has exceeded analyst expectations 5 out of the last 8 tracked quarters, and missed expectations 3 quarters.

What are your expectations from Wintrust Financial for earnings this quarter? Let us know in the comments!

Analyst Expected vs. Reported EPS
Quarter Expected Reported Surprise Result
Q3, 2019 $1.61 $1.70 5.1% Beat
Q2, 2019 $1.63 $1.52 -6.4% Missed
Q1, 2019 $1.54 $1.64 6.6% Beat
Q4, 2018 $1.57 $1.53 -2.6% Missed
Q3, 2018 $1.54 $1.57 1.9% Beat
Q2, 2018 $1.45 $1.53 5.5% Beat
Q1, 2018 $1.28 $1.36 5.9% Beat
Q4, 2017 $1.13 $1.02 -9.0% Missed

In the following table, we summarize the company’s stock price movements after earnings releases. The “Price Day Prior” column shows the closing stock price on the day before the earnings report, and the “Price Next Day” column shows the stock price at the end of the trading day after the earnings report.

After the last earnings report for the period ending September 30, 2019, the stock price reacted by falling by -2.2%.

Stock Price Performance After Earnings
Report Date Price Day Prior Price Next Day Change % Result
2019-10-16 $64.79 $63.35 -2.2% Decline
2019-07-15 $72.09 $65.07 -9.7% Decline
2019-04-15 $75.13 $76.49 1.8% Increase
2019-01-22 $74.46 $70.66 -5.1% Decline

Fundamentals And Technical Analysis

Wintrust Financial is currently trading at $69/share, up 0.3% for the day. The company is trading at approximately 88.2% of its 52-week high of $78.25/share. The company’s stock price is up 8.9% since the last earnings report and up 0.1% over the previous week. The company’s 14 Day Relative Price Index (RSI) of 48.89 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.

NASDAQGS:WTFC Stock Price Chart Source: Finbox

The current share price implies a price-to-earnings (P/E) multiple of 11.3x and a forward P/E multiple of 11.0x. Wintrust Financial’s current share price also implies a price-to-book (P/B) multiple of 1.2x. The following table summarizes some other key fundamental ratios:

Data as of January 20, 2020
Metric Value
Last Fiscal Period FY2019.Q3
Period End Date September 30, 2019
Stock Price (Current) $69
P/E Ratio 11.3x
P/E Ratio (Fwd) 11.0x
PEG Ratio -16.8
Total Debt to Capital (%) 33.4%
Levered Free Cash Flow $26.042 million
Enterprise Value / EBITDA

Source: Finbox

Company Profile: Wintrust Financial Corporation

Wintrust Financial Corporation is a mid-cap stock with a market capitalization of $3.938 billion. The company operates in the Financial sector and the Banks industry.

Wintrust Financial Corporation operates as a financial holding company in the Chicago metropolitan area, southern Wisconsin, and northwest Indiana. It operates in three segments: Community Banking, Specialty Finance, and Wealth Management. The Community Banking segment offers non-interest bearing deposits, non-brokered interest-bearing transaction accounts, and savings and domestic time deposits; home equity, consumer, and real estate loans; safe deposit facilities; and automatic teller machine (ATM), Internet banking, and other services.

The company also engages in the origination and purchase of residential mortgages for sale into the secondary market; and provision of lending, deposits, and cash management services to condominium, homeowner, and community associations, as well as asset-based lending for middle-market companies. In addition, this segment offers loan and deposit services to mortgage brokerage companies; lending to restaurant franchisees; direct leasing; small business administration loans; commercial mortgages and construction loans; and financial solutions.

Wintrust provides personal and commercial banking services primarily to individuals, small to mid-sized businesses, local governmental units, and institutional customers. The Specialty Finance segment offers commercial and life insurance premiums financing for businesses and individuals; accounts receivable financing, value-added, and out-sourced administrative services; and other specialty finance services, as well as data processing of payrolls, billing, and cash management services to the temporary staffing industry.

The Wealth Management segment provides trust and investment, asset management, tax-deferred exchange services, securities brokerage, and retirement plan services. As of December 31, 2018, the company had approximately 167 banking facilities and 222 ATMs. Wintrust Financial Corporation was founded in 1991 and is headquartered in Rosemont, Illinois.

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