Bay Commercial Bank (BCML) beats fourth quarter profit and revenue estimates

Bay Commercial Bank (BCML) posted quarterly earnings of $0.51 per share, beating Zacks consensus estimate of $0.50 per share. That compares to earnings of $0.39 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents a 2% earnings surprise. A quarter ago, this company was expected to post a profit of $0.51 per share when it actually produced a profit of $0.51, unsurprisingly.

In the past four quarters, the company has exceeded consensus EPS estimates twice.

Commercial Bank of the Bay, which is industry-owned Zacks Banks – West, posted revenue of $21.77 million for the quarter ended December 2021, beating Zacks’ consensus estimate of 3.66%. That compares to revenue of $21.37 million a year ago. The company has exceeded consensus revenue estimates three times in the past four quarters.

The sustainability of the immediate stock price movement based on recently released numbers and future earnings forecasts will primarily depend on management’s comments on the earnings call.

Bay Commercial Bank shares are up about 3.4% year-to-date compared to the -8.7% decline in the S&P 500.

What’s next for Bay Commercial Bank?

With Bay Commercial Bank outperforming the market so far this year, the question on investors’ minds is: what’s next for the stock?

There is no easy answer to this key question, but a reliable measure that can help investors answer 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 recently.

Empirical research shows a strong correlation between short-term stock movements and trends in earnings estimate revisions. Investors can track these revisions on their own or rely on a proven scoring tool like Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Before that Press release, the trend of estimate revisions for Bay Commercial Bank: favorable. While the magnitude and direction of estimate revisions may change following the release of the company’s earnings report, the current situation results in a Zacks No. 2 (buy) ranking for the stock. Thus, stocks are expected to outperform the market in the near future. You can see the full list of today’s Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how the estimates for the next few quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.70 on $26.6 million in revenue for the upcoming quarter and $1.94 on $108.5 million in revenue for the current fiscal year.

Investors should be aware that the outlook for the sector can also have a significant impact on stock performance. In terms of Zacks industry rankings, Banks – West is currently in the top 12% of Zacks 250+ industries. Our research shows that the top 50% of industries ranked by Zacks outperform the bottom 50% by a factor of more than 2 to 1.

Another stock in Zacks Finance’s broader sector, Hannon Armstrong (HASI), has yet to report results for the quarter ending December 2021. Results are expected to be released on February 17.

This provider of financing for sustainable infrastructure projects is expected to post quarterly earnings of $0.41 per share in its next report, representing a year-over-year change of +10.8%. The consensus EPS estimate for the quarter remained unchanged for the past 30 days.

Hannon Armstrong’s revenue is expected to be $24.43 million, up 8.2% from the year-ago quarter.

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