VersaBank's Earnings Report Analysis

• VersaBank's EPS of $0.18 fell short of the anticipated $0.21, marking a negative surprise of 14.29%.
• The company reported revenue of approximately $21.87 million, slightly above the estimated $21.76 million.
• VersaBank's financial health indicators include a debt-to-equity ratio of 0.21 and an earnings yield of approximately 7.93%.

VersaBank, trading under the symbol NASDAQ:VBNK, is a financial institution that provides banking services. The company recently reported its earnings, revealing some challenges in meeting market expectations. Despite generating revenue of approximately $21.87 million, which slightly surpassed the estimated $21.76 million, the earnings per share (EPS) of $0.18 fell short of the anticipated $0.21.

The recent earnings report highlights a negative surprise of 14.29%, as VBNK's EPS of $0.18 did not meet the Zacks Consensus Estimate of $0.21. This is a significant decline from the $0.33 per share reported in the same quarter last year. In the previous quarter, the company also faced a 31.03% negative surprise, achieving only $0.20 per share against an expected $0.29.

VBNK's financial metrics provide further insight into its market valuation. The company has a price-to-earnings (P/E) ratio of approximately 12.62, indicating how the market values its earnings. The price-to-sales ratio is about 3.19, reflecting the company's market value relative to its sales. Additionally, the enterprise value to sales ratio is around 1.41, suggesting how the company's total value compares to its sales.

The company's financial health is further illustrated by its debt-to-equity ratio of 0.21, indicating a conservative approach to leveraging debt. VBNK's earnings yield stands at about 7.93%, offering insight into the return on investment for shareholders. The enterprise value to operating cash flow ratio is approximately 2.63, highlighting the company's cash flow efficiency.