News
Provident Financial (PROV) Q4 Earnings and Revenue Beat Estimates
Provident Financial (PROV) reported quarterly earnings of $0.28 per share, beating the Zacks Consensus Estimate of $0.23 per share. This compares to earnings of $0.26 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of 21.74%. A quarter ago, this Provident Savings Bank holding company was expected to post earnings of $0.24 per share when it actually produced earnings of $0.22, delivering a surprise of -8.33%.
Over the past four quarters, the company has surpassed consensus EPS estimates twice.
Provident Financial, which belongs to the Zacks Financial – Savings and Loan industry, posted revenues of $9.92 million for the quarter ended June 2024, surpassing the Zacks Consensus Estimate by 3.69%. This compares to year-ago revenues of $10.37 million. The company has surpassed consensus revenue estimates only once in the past four quarters.
The sustainability of the stock’s immediate price movement based on recently-released numbers and future earnings expectations will mostly depend on management’s commentary on the earnings call.
Provident Financial shares are up about 3.5% since the start of the year, compared with the S&P 500’s gain of 14.5%.
What’s next for Provident Financial?
While Provident Financial has underperformed the market so far this year, the question that comes to investors’ minds is: what’s next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address it is the company’s earnings outlook. This includes not only current consensus earnings expectations for the upcoming quarter(s), but also how those expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track these revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Provident Financial: mixed. While the magnitude and direction of estimate revisions could change following the company’s just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. Therefore, the stock is expected to perform in line with the market in the near future. You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.
The story continues
It will be interesting to see how the estimates for the upcoming quarters and the current fiscal year change in the coming days. The current consensus EPS estimate is $0.25 on $9.77 million in revenue for the upcoming quarter and $1.10 on $40.21 million in revenue for the current fiscal year.
Investors should be aware of the fact that the outlook for the sector can have a material impact on stock performance as well. In terms of the Zacks Industry Rank, Financial – Savings and Loan is currently in the bottom 24% of the 250+ Zacks industries. Our research shows that the top 50% of Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Equinix (EQIX), another stock in the broader Zacks Finance sector, has yet to report earnings for the quarter ended June 2024. Results are expected to be released on Aug. 7.
This data center operator is expected to post quarterly earnings of $8.82 per share in its upcoming report, representing a year-over-year change of +9.7%. The consensus EPS estimate for the quarter has remained unchanged over the past 30 days.
Equinix’s revenue is expected to be $2.16 billion, up 6.9% from the year-ago quarter.
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Provident Financial Holdings, Inc. (PROV): Free Stock Analysis Report
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