What does BANC's earnings trend suggest for long-term investors?

**Banc of California's (BANC) earnings trend suggests a positive outlook for long-term investors**, primarily based on the following points: 1. **Consistent Improvement in Earnings**: BANC has demonstrated a strong trend of improving earnings, with significant increases in net income and profit margins. For instance, net income rose from a $1.94 billion loss in FY 2023 to $87.1 million in FY 2024, and the profit margin improved from a net loss in FY 2023 to 9.1% in FY 2024. 2. **Revenue Growth**: Although BANC's revenues missed analyst estimates in some quarters, the company has shown substantial growth compared to the previous year. For example, total revenue increased by 289% from FY 2023 to FY 2024, reaching $960.4 million. 3. **Profitability and Stability**: BANC's shift to profitability and the reduction in the cost-to-income ratio indicate improved operational efficiency. The company's positive earnings surprises in recent quarters, such as 21.74% in the latest reported quarter, suggest that it is consistently exceeding market expectations. 4. **Insider Confidence**: The purchase of BANC's stock by key executives, including CEO Jared M. Wolff and Director Joseph J. Rice, reflects confidence in the company's future prospects. Such insider actions can bolster investor confidence and suggest that the management believes the stock is undervalued. 5. **Earnings Estimates and Forecasts**: Analysts have a positive outlook on BANC, with earnings estimates for the next quarter indicating potential for another earnings beat. The company's earnings ESP (Expected Surprise Prediction) is positive, which, when combined with a Zacks Rank, suggests a high likelihood of earning beats. 6. **Market Performance and Investor Confidence**: BANC's stock has outperformed the market, with a 4% gain since the beginning of the year compared to the S&P 500's 3.5% gain. This performance, coupled with the company's strong financial results, could attract more long-term investors. In conclusion, BANC's earnings trend, marked by consistent growth, profitability, and positive surprises, combined with insider confidence and favorable market performance, makes it an attractive investment for long-term investors looking for stability and potential for growth.