Customers Bancorp: Five-Year Share Price Surge of 540% Amidst EPS Growth

Customers Bancorp (NYSE:CUBI) has seen a 540% return over the past five years, with earnings per share growing at 17% annually. While the share price growth has been higher at 42% per year, the market's positive opinion of the business is not surprising given its track record of growth. The total shareholder return (TSR) is also higher, at 540%, suggesting that shareholders have benefited from a spin-off or discounted capital raising.

Customers Bancorp (CUBI) has been a standout performer in the banking sector, with a remarkable 540% return over the past five years. The company's earnings per share (EPS) have grown at an annual rate of 17%, and the share price has appreciated by 42% per year. This impressive track record has contributed to a total shareholder return (TSR) of 540%, reflecting the significant value created for shareholders [1].

As the company prepares to release its earnings for the quarter ended June 2025, market expectations are high. Analysts anticipate a year-over-year increase in earnings driven by higher revenues. The consensus estimate for EPS is $1.50 per share, representing a 0.7% increase from the previous year. Revenues are expected to be $198.92 million, up 0.1% from the year-ago quarter [1].

The predictive power of earnings surprises can be assessed using the Zacks Earnings ESP (Expected Surprise Prediction) model. For Customers Bancorp, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -0.89%. This suggests that analysts have recently become more bearish on the company's earnings prospects. However, the stock carries a Zacks Rank of #2, making it difficult to conclusively predict an earnings beat [1].

Historically, Customers Bancorp has a strong track record of beating consensus EPS estimates. In the last four quarters, the company has exceeded expectations three times, including a significant surprise of +20.31% in the most recent quarter [1].

While earnings surprises can influence stock prices, they are not the sole factor. Other factors such as management guidance, industry trends, and macroeconomic conditions also play a role. Investors should closely monitor the earnings call for any insights into future growth prospects and potential risks [1].

In summary, Customers Bancorp's strong historical performance and the expected increase in earnings have driven market optimism. However, the recent downward revision in estimates and the Earnings ESP suggest a cautious outlook. Investors should stay informed and consider the broader context when making investment decisions.

References:
[1] https://finance.yahoo.com/news/customers-bancorp-cubi-earnings-expected-140015094.html
[2] https://www.marketbeat.com/stocks/NYSE/CUBI/earnings/