Wintrust Financial (NasdaqGS:WTFC) Q3 2020 Earnings Preview

in EARNINGS/INVESTING IDEAS by

Wintrust Financial Corporation (NasdaqGS:WTFC) is scheduled to report Q3 earnings results after markets close for trading on October 21, 2020.

The company is expected to report earnings of $1.11/share on revenue of $408.8 million. The consensus earnings per share (EPS) of $1.11/share is based on a poll of 12 analysts and represents a decline in eps of −34.4% over the same quarter last year, when the company reported earnings of $1.70/share.

The revenue forecast of $408.8 million based on a poll of 10 analysts implies a year-over-year (YoY) growth in revenue of 7.1%. Last year the company reported $381.5 million in revenue for the quarter.

Expected to report EPS contraction of −34.4% for Q3, 2020
Metric Expected Prior Year YoY Change
Revenue $408.77 $381.55 7.1%
EPS $1.11 $1.70 −34.4%

Earnings Call Trends

Historically, management has exceeded analyst expectations 4 out of the last 8 tracked quarters, and missed expectations 4 quarters.

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

Analyst Expected vs. Reported EPS
Quarter Expected Reported Surprise Result
Q2, 2020 $0.71 $0.51 −27.9% Missed
Q1, 2020 $1.16 $1.28 10.7% Beat
Q4, 2019 $1.58 $1.54 −2.6% Missed
Q3, 2019 $1.62 $1.70 4.9% Beat
Q2, 2019 $1.65 $1.52 −7.3% Missed
Q1, 2019 $1.53 $1.64 7.4% Beat
Q4, 2018 $1.57 $1.53 −2.4% Missed
Q3, 2018 $1.54 $1.57 2.0% Beat

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 June 30, 2020, the stock price reacted by increasing 5.1%.

Stock Price Performance After Earnings
Report Date Price Day Prior Price Next Day Change % Result
July 21, 2020 $41.61 $43.73 5.1% Increase
April 21, 2020 $33.85 $35.44 4.7% Increase
January 21, 2020 $69 $65.24 −5.4% Decline
October 16, 2019 $64.79 $63.35 −2.2% Decline

Fundamentals And Technical Analysis

Wintrust Financial Corporation is currently trading at $48/share, up 1.4% for the day. The company is trading at approximately 67.2% of its 52-week high of $71.95/share. The company’s stock price is up 9.8% since the last earnings report and down −1.9% over the previous week.

The company’s 14 Day Relative Price Index (RSI) of 57.60 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 10.50 and a forward P/E multiple of 12.09.

Wintrust Financial Corporation’s current share price also implies a price-to-book (P/B) multiple of 0.77. The following table summarizes some other key fundamental ratios:

Data as of October 19, 2020
Metric Value
Last Reported Fiscal Period Key FY2020.Q2
Period End Date June 30, 2020
Stock Price (Current) $48
P/E Ratio 10.5x
P/E Ratio (Fwd) 12.1x
PEG Ratio −0.5
Total Debt / Total Capital 46.8%
Levered Free Cash Flow -$214.8 million
Free Cash Flow Yield -7.7%

Finbox

Wintrust Financial Corporation is a mid-cap stock with a market capitalization of $2.727 billion. The company operates in the Financials 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), online and mobile banking, and other services. It 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. It 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 temporary staffing industry. The Wealth Management segment provides trust and investment, asset management, tax-deferred exchange, securities brokerage, and retirement plan services. As of December 31, 2019, the company had approximately 187 banking facilities and 230 ATMs. Wintrust Financial Corporation was founded in 1991 and is headquartered in Rosemont, Illinois.

Expertise: financial modeling, mergers & acquisitions. Andy is also a founder at finbox.io, where he’s focused on building tools that make it faster and easier for investors to do investment research. Andy’s background is in investment banking where he led the analysis on over 50 board advisory engagements involving mergers and acquisitions, fairness opinions and solvency opinions. Some of his board advisory highlights: - Sears Holdings Corp.’s $620 mm spin-off via rights offering of Sears Outlet, Hometown Stores and Sears Hardware Stores. - Cerberus Capital Management’s $3.3 bn acquisition of SUPERVALU Inc.’s New Albertsons, Inc. assets. Andy can be reached at andy@finbox.io or at +1 (516) 778-6257.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.