Provident Financial Services, Inc. (NYSE:PFS) Earnings Report Highlights

• Earnings per share (EPS) of $0.37 missed the estimated $0.50, marking a -26% earnings surprise.
• Quarterly revenue was $205.9 million, below the estimated $210.4 million, yet showed significant year-over-year growth.
• The company's price-to-earnings (P/E) ratio stands at 20.92, with a debt-to-equity ratio of approximately 1.00.

Provident Financial Services, Inc. (NYSE:PFS) is a key player in the financial sector, specifically within the savings and loan industry. The company provides a range of financial services, including personal and business banking. Despite its efforts, PFS faces stiff competition from other financial institutions in the industry.

On January 28, 2025, PFS reported earnings per share (EPS) of $0.37, which was below the estimated $0.50. This shortfall marks a significant earnings surprise of -26%, as highlighted by Zacks. Despite this, the EPS showed a slight increase from the $0.36 reported a year ago. This indicates a modest year-over-year improvement, but still falls short of expectations.

The company's revenue for the quarter was approximately $205.9 million, missing the estimated $210.4 million by 1.76%. However, this is a notable increase from the $114.76 million reported a year ago, reflecting growth in the company's operations. Despite this growth, the revenue miss highlights challenges in meeting market expectations.

PFS has a price-to-earnings (P/E) ratio of about 20.92, suggesting that investors are willing to pay this multiple for each dollar of earnings. The price-to-sales ratio is approximately 2.61, indicating the market's valuation of its sales. These metrics provide insight into how the market perceives the company's financial health and growth potential.

The company's debt-to-equity ratio is roughly 1.00, showing a balanced use of debt relative to equity. This ratio is crucial for understanding the company's financial leverage and risk. Additionally, the enterprise value to sales ratio of around 5.09 and the enterprise value to operating cash flow ratio of approximately 21.19 offer further insight into the company's valuation and cash flow efficiency.