Cadence Bank Heads Into Earnings – What To Expect (NYSE:CADE)

Cadence Bank (NYSE: CADE) is approaching its next earnings report today with its stock price having cooled off 3.28% over the past 5 trading days leading in. Currently trading at $36.88, the bank's performance over the past year has been impressive, fueled by consistent earnings beats, strategic acquisitions, and favorable analyst sentiment.

Analysts project that Cadence Bank will report an earnings per share (EPS) of $0.77 for the upcoming quarter, slightly up from $0.73 in the same period last year. Revenue is expected to reach approximately $523.25 million, reflecting a strong year-over-year growth of 16.96%.

Over the past year, CADE has delivered a return of over 21.80%, with its price fluctuating between $25.22 and $40.20. This strong performance is underscored by its 50-day simple moving average of $37.04 and 200-day simple moving average of $33.38, both indicating a positive trend. However, the slight dip in today's trading suggests that some investors may be taking profits ahead of the earnings release.

Recent financial results paint a picture of a bank on the rise. In the second quarter of 2025, Cadence reported adjusted earnings of $0.73 per diluted share, exceeding the consensus estimate of $0.69. This marks a continuation of a trend, with the bank consistently surpassing earnings expectations over the past year. Revenue for the trailing twelve months stands at $1.74 billion, with a net income of $525.16 million, translating to an EPS of $2.82. The company also offers a dividend of $1.10 per share, yielding a respectable 2.77% with a manageable payout ratio of 38.12%.

Strategic acquisitions have also played a key role in Cadence's growth trajectory. The additions of First Chatham Bank and Industry Bancshares in the second quarter alone added billions in assets, expanding the bank's footprint and revenue streams. This proactive approach to expansion has further bolstered market confidence.

Analysts currently have an average price target of $40.67 for CADE, suggesting a potential upside of approximately 3.25% from the current price. This optimism is reflected in recent upgrades from major brokerages. Hovde Group recently raised its price objective to $40.00, while Piper Sandler upgraded the stock to “overweight” with a target price of $42.00. Barclays reiterated an “overweight” rating with a target price of $41.00.

While the prevailing sentiment surrounding Cadence Bank is largely positive, a more cautious perspective is warranted. The stock's rapid ascent over the past year may have priced in much of the bank's future growth potential. While acquisitions have undoubtedly contributed to the bank's expansion, they also introduce integration risks and potential for overpaying for assets.

Furthermore, the bank's reliance on net interest income makes it particularly vulnerable to changes in the interest rate environment. Should interest rates decline, Cadence's profitability could be significantly impacted. The fact that revenue has occasionally missed estimates, despite strong earnings performance, suggests that cost-cutting measures and one-time gains may be masking underlying weaknesses in the bank's core business.

The current economic climate presents additional challenges. A potential slowdown could lead to increased loan defaults and reduced demand for banking services, negatively impacting Cadence's bottom line. While analysts are generally optimistic, their price targets may not fully account for these potential risks.

Looking ahead to the upcoming earnings report, the markets will be closely watching for several key metrics: net interest margin, loan growth, and credit quality. Any signs of weakness in these areas could trigger a sell-off, while continued strength could further propel the stock higher.