What factors drove WAL's consistent earnings surprises in 2024?

Western Alliance Bancorporation (WAL) experienced consistent earnings surprises in 2024 due to a combination of factors that contributed to its strong financial performance:

1. **Strong Revenue Growth**: WAL's revenue grew by 15.3% compared to the same quarter last year, with the latest report period ending on December 31, 2024. This robust growth in revenue was a key factor in the company's earnings outperformance.
2. **Efficient Cost Management**: The company's net margin stood at 15.54%, indicating effective cost management and profitability. This efficiency in managing expenses allowed WAL to maintain high profit margins despite the increase in revenue.
3. **Return on Equity (ROE) and Return on Assets (ROA)**: WAL achieved a ROE of 13.98% and a ROA of 15.54%. These metrics reflect the company's ability to generate profits from its equity and assets, which is a testament to its strong financial performance and operational efficiency.
4. **Analyst Estimates and Price Target Adjustments**: Several analysts, including DA Davidson and Wedbush, adjusted their earnings estimates and price targets for WAL. DA Davidson's forecast of $7.38 per share for FY2024, up from $7.35, and Wedbush's estimate of $7.40 per share, suggest that analysts were anticipating strong earnings performance, which was in line with WAL's actual earnings outcomes.

In summary, WAL's consistent earnings surprises in 2024 were driven by strong revenue growth, efficient cost management, strong profitability metrics, and analyst expectations that reflected the company's solid financial performance.