Westamerica Bancorporation Posts Impressive Earnings Despite Falling Short on Revenue
April 21, 2023
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Westamerica Bancorporation ($NASDAQ:WABC), a financial institution based in the western United States, has posted impressive earnings despite falling short on revenue. The impressive earnings, although below predictions, made Westamerica Bancorporation the top performing bank in its region. The company attributes this success to its prudent cost-cutting measures and its innovative approach to providing financial services to its customers. The company has also focused on increasing customer satisfaction by offering a variety of banking products and services that have proven extremely popular with its customers.
Westamerica Bancorporation is committed to staying at the forefront of the banking industry and continuing to provide quality financial services to its customers. With the latest earnings report, the company is optimistic that it can continue to grow and expand its operations in the years to come. Investors are also viewing the company favorably as they are increasingly confident that Westamerica Bancorporation can remain profitable despite a challenging economic environment.
Share Price
The stock opened at $40.9 and closed at $41.2, barely a 0.1% dip from last closing price of 41.2. Despite this, Westamerica Bancorporation was able to post a positive quarter due to cost-cutting efforts and improved efficiency. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Westamerica Bancorporation. More…
| Total Revenues | Net Income | Net Margin |
| – | 122.03 | – |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Westamerica Bancorporation. More…
| Operations | Investing | Financing |
| 113.7 | -631.29 | -320.26 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Westamerica Bancorporation. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 6.95k | 6.35k | – |
Key Ratios Snapshot
Some of the financial key ratios for Westamerica Bancorporation are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 9.1% | – | – |
| FCF Margin | ROE | ROA |
| – | – | – |
Analysis
As GoodWhale, when we analyze the financials of WESTAMERICA BANCORPORATION, we were quite impressed. On our Star Chart, the company scored a very high health score of 10/10, which indicates that it has the capability to safely ride out any crisis without risking bankruptcy. Furthermore, WESTAMERICA BANCORPORATION is also strong in growth, profitability, and dividend. It is also medium in terms of asset, which is a good sign as companies need to maintain a certain level of liquidity. We also classify WESTAMERICA BANCORPORATION as a “gorilla”, which is a type of company that has achieved stable and high revenue or earning growth due to its strong competitive advantage. Therefore, investors who are looking for long-term growth and stability may be particularly interested in investing in WESTAMERICA BANCORPORATION. More…
Peers
The company’s primary subsidiary is Westamerica Bank, a regional community bank with over 80 branches and 2,000 employees serving customers in northern and central California. Westamerica Bancorp competes with other regional banks such as Eagle Bancorp Inc, Spar Nord Bank A/S, and CNB Financial Services Inc.
– Eagle Bancorp Inc ($NASDAQ:EGBN)
Eagle Bancorp Inc is a bank holding company that operates through its subsidiary, EagleBank. The company offers a range of banking products and services to businesses and individuals in Montgomery County, Maryland, and Washington D.C. As of December 31, 2020, the company operated 21 banking offices.
– Spar Nord Bank A/S ($LTS:0JH4)
Spar Nord Bank A/S is a Denmark-based bank engaged in the provision of banking products and services to retail, corporate and institutional customers. The Bank’s product range comprises current and savings accounts, loans, mortgages, credit cards, payment services, investments and pension products, as well as leasing, factoring and export financing. It also offers insurance products, such as motor, household, travel, life and health insurance. The Bank operates a branch network in Denmark and offices in Sweden, Norway, the Faroe Islands, Finland, Luxembourg and Germany.
– CNB Financial Services Inc ($OTCPK:CBFC)
CNB Financial Services Inc is a holding company for Citizens National Bank, which is a full-service bank that offers personal and business banking services. The company has a market cap of 22.29M and a ROE of -25.68%. The company operates in Pennsylvania, New York, and Ohio.
Summary
Westamerica Bancorporation reported its earnings for the quarter, with GAAP EPS of $1.51, beating the consensus estimate by $0.13.
However, revenue of $51M missed the estimates by $29.67M. This means there was a positive surprise on the earnings front, but the revenue was below expectations. Investors should look at the company’s fundamentals and weigh whether the potential upside from its earnings beat is worth the risk of a lower revenue performance. Analyzing the company’s recent performance, future prospects, and risk profile can help investors decide how to proceed.
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