Regional banking firm Texas Capital Bancshares (NASDAQ: TCBI) will be reporting earnings this Wednesday after market hours. Here’s what to expect.
Texas Capital Bank beat analysts’ revenue expectations by 2.7% last quarter, reporting revenues of $307.5 million, up 15.2% year on year. It was an exceptional quarter for the company, with a beat of analysts’ EPS estimates and a solid beat of analysts’ net interest income estimates.
Is Texas Capital Bank a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Texas Capital Bank’s revenue to grow 7.3% year on year to $327.1 million, slowing from the 9.3% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.77 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Texas Capital Bank has missed Wall Street’s revenue estimates three times over the last two years.
Looking at Texas Capital Bank’s peers in the regional banks segment, some have already reported their Q3 results, giving us a hint as to what we can expect. First Horizon delivered year-on-year revenue growth of 7.5%, beating analysts’ expectations by 7.7%, and FB Financial reported revenues up 94.2%, topping estimates by 4.2%. First Horizon traded down 13.3% following the results while FB Financial’s stock price was unchanged.
Read our full analysis of First Horizon’s results here and FB Financial’s results here.
The outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. While some of the regional banks stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 4.8% on average over the last month. Texas Capital Bank is down 3.8% during the same time and is heading into earnings with an average analyst price target of $91.71 (compared to the current share price of $82.11).
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