WSFS Financial (NasdaqGS:WSFS) Q3 2020 Earnings Prep

in EARNINGS/INVESTING IDEAS by

WSFS Financial Corporation (NasdaqGS:WSFS) is scheduled to report Q3 earnings results on October 22, 2020.

The company is expected to report earnings of $0.72/share on revenue of $113 million. The consensus earnings per share (EPS) of $0.72/share is based on a poll of 5 analysts and represents a decline in eps of −26.9% over the same quarter last year, when the company reported earnings of $0.98/share.

The revenue forecast of $113 million based on a poll of 5 analysts implies a year-over-year (YoY) decline in revenue of −6.5%. Last year the company reported $120.8 million in revenue for the quarter.

Expected to report EPS contraction of −26.9% for Q3, 2020
Metric Expected Prior Year YoY Change
Revenue $112.96 $120.83 −6.5%
EPS $0.72 $0.98 −26.9%

Earnings Call Trends

Historically, management has exceeded analyst expectations 6 out of the last 8 tracked quarters, and missed expectations 2 quarters.

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

Analyst Expected vs. Reported EPS
Quarter Expected Reported Surprise Result
Q2, 2020 $0.45 -$0.46 −201.8% Missed
Q1, 2020 $0.69 $0.23 −66.9% Missed
Q4, 2019 $0.91 $0.96 5.2% Beat
Q3, 2019 $0.88 $0.98 12.0% Beat
Q2, 2019 $0.77 $0.88 14.9% Beat
Q1, 2019 $0.85 $0.91 6.8% Beat
Q4, 2018 $0.90 $0.94 4.2% Beat
Q3, 2018 $0.92 $0.96 4.3% 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 2.0%.

Stock Price Performance After Earnings
Report Date Price Day Prior Price Next Day Change % Result
July 23, 2020 $27.38 $27.94 2.0% Increase
April 27, 2020 $23.16 $27.15 17.2% Increase
January 21, 2020 $42.94 $41.22 −4.0% Decline
October 21, 2019 $44.12 $45.36 2.8% Increase

Fundamentals And Technical Analysis

WSFS Financial Corporation is currently trading at $29.35/share, down −2.1% for the day. The company is trading at approximately 63.9% of its 52-week high of $45.92/share. The company’s stock price is up 5.0% since the last earnings report and down −3.8% over the previous week.

The company’s 14 Day Relative Price Index (RSI) of 49.05 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.


NasdaqGS:WSFS Stock Price Chart
Source: Finbox

The current share price implies a price-to-earnings (P/E) multiple of 14.38 and a forward P/E multiple of 32.41.

WSFS Financial Corporation’s current share price also implies a price-to-book (P/B) multiple of 0.82. The following table summarizes some other key fundamental ratios:

Data as of October 20, 2020
Metric Value
Last Reported Fiscal Period Key FY2020.Q2
Period End Date June 30, 2020
Stock Price (Current) $29.35
P/E Ratio 14.4x
P/E Ratio (Fwd) 32.4x
PEG Ratio −0.4
Total Debt / Total Capital 24.9%
Levered Free Cash Flow $66.764 million
Price To Sales 2.9x

Finbox

WSFS Financial Corporation is a small-cap stock with a market capitalization of $1.487 billion. The company operates in the Financials sector and the Thrifts & Mortgage Finance industry.

WSFS Financial Corporation operates as the savings and loan holding company for the Wilmington Savings Fund Society, FSB that provides various banking services in the United States. It operates through three segments: WSFS Bank, Cash Connect, and Wealth Management. The company offers various deposit products, including savings accounts, demand deposits, interest-bearing demand deposits, money market deposit accounts, and certificates of deposit, as well as jumbo certificates of deposit. It also provides a range of loans, which comprise residential real estate loans; commercial real estate mortgage loans; commercial construction loans to developers; commercial loans for working capital, financing equipment and real estate acquisitions, business expansion, and other business purposes; and consumer credit products, such as home improvement, automobile, and other secured and unsecured personal installment loans, as well as home equity lines and unsecured lines of credit. In addition, the company offers cash management, trust, and wealth management services. Further, it markets various third-party investment and insurance products, such as single-premium annuities, whole life policies, and securities; provides investment advisory services to high net worth individuals and institutions; and offers mortgage and title services. Additionally, the company provides ATM vault cash, smart safe, and other cash logistics services; and online reporting and ATM cash management, predictive cash ordering and reconcilement services, armored carrier management, loss protection, ATM processing equipment sales, and deposit safe cash logistics services. As of December 31, 2019, it operated 118 offices, including 45 in Delaware, 55 in Pennsylvania, 16 in New Jersey, 1 in Virginia, and 1 in Nevada. The company was founded in 1832 and is headquartered in Wilmington, Delaware.

Expertise: financial technology, analyzing market trends. Brian is a founder at finbox.io, where he’s focused on building tools that make it faster and easier for investors to research stock fundamentals. Brian’s background is in physics & computer science and previously worked as a software engineer at GE Healthcare. He enjoys applying his expertise in technology to help find market trends that impact investors. Brian can be reached at brian@finbox.io or at +1 (516) 778-6257.

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