CBU

Community Financial System (CBU) reported $224.05 million in revenue for the quarter ended June 2026, representing a year-over-year increase of 12%. EPS of $1.16 for the same period compares to $0.97 a year ago. The reported revenue compares to the Zacks Consensus Estimate of $222.08 million, representing a surprise of +0.89%. The company delivered an EPS surprise of -2.52%, with the consensus EPS estimate being $1.19. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance. As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately. Here is how Community Financial performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Efficiency ratio (GAAP): 61.7% compared to the 60.7% average estimate based on three analysts. Net Interest Margin: 3.5% compared to the 3.5% average estimate based on three analysts. Average Balances - Total interest-earning assets: $16.11 billion versus $16.17 billion estimated by three analysts on average. Net charge-offs/average loans: 0.1% versus the two-analyst average estimate of 0.1%. Mortgage banking: $1.19 million versus the three-analyst average estimate of $1.38 million. Total Non-Interest Income: $84.01 million versus $81.77 million estimated by three analysts on average. Employee benefit services: $34.88 million versus $35.38 million estimated by two analysts on average. Insurance services: $13.2 million compared to the $15.23 million average estimate based on two analysts. Wealth management services: $10.4 million compared to the $9.33 million average estimate based on two analysts. Deposit service and other banking fees: $20.1 million versus the two-analyst average estimate of $20.98 million. Fully tax-equivalent net interest income: $140.04 million compared to the $140.11 million average estimate based on two analysts. Net Interest Income: $139.14 million versus $140.27 million estimated by two analysts on average. View all Key Company Metrics for Community Financial here>>> Shares of Community Financial have returned -0.3% over the past month versus the Zacks S&P 500 composite's +1.7% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Community Financial System, Inc. (CBU) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Community Financial System (CBU) came out with quarterly earnings of $1.16 per share, missing the Zacks Consensus Estimate of $1.19 per share. This compares to earnings of $0.97 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -2.52%. A quarter ago, it was expected that this bank holding company would post earnings of $1.1 per share when it actually produced earnings of $1.09, delivering a surprise of -0.91%. Over the last four quarters, the company has surpassed consensus EPS estimates just once. Community Financial, which belongs to the Zacks Financial - Miscellaneous Services industry, posted revenues of $224.05 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 0.89%. This compares to year-ago revenues of $200.14 million. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Community Financial shares have added about 15.9% since the beginning of the year versus the S&P 500's gain of 8.3%. While Community Financial has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Community Financial was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.23 on $227.19 million in revenues for the coming quarter and $4.70 on $894.2 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Financial - Miscellaneous Services is currently in the bottom 31% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, AlTi Global, Inc. (ALTI), has yet to report results for the quarter ended June 2026. This company is expected to post quarterly earnings of $0.06 per share in its upcoming report, which represents a year-over-year change of +166.7%. The consensus EPS estimate for the quarter has been revised 16.7% lower over the last 30 days to the current level. AlTi Global, Inc.'s revenues are expected to be $61.8 million, up 16.3% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Community Financial System, Inc. (CBU) : Free Stock Analysis Report AlTi Global, Inc. (ALTI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. GAAP Earnings Per Share: $1.16, a 19.6% increase from the prior year and a 7.4% increase from the previous quarter. Operating Earnings Per Share: $1.16, compared to $1.04 one year prior and $1.15 in the previous quarter. Net Interest Income: $139.1 million, a 3.3% increase from the previous quarter and an 11.5% increase from the prior year. Net Interest Margin: Increased to 3.49% from 3.45% in the previous quarter. Operating Non-Interest Revenues: Increased by 6.4% compared to the prior year's second quarter. Total Non-Interest Expenses: $137.7 million, a 3.5% increase from the previous quarter and a 6.7% increase from the prior year. Ending Total Deposits: Increased by 7.4% from one year prior, with a decrease of 1.1% from the previous quarter. Allowance for Credit Losses: $91.7 million, representing 81 basis points of total loans outstanding. Pre-Tax Pre-Provision Earnings Growth: 14.9% year-over-year. Banking Pre-Tax Earnings Growth: 13.2% year-over-year. Employee Benefits Pre-Tax Earnings Growth: 16.2% year-over-year. Wealth Management Pre-Tax Earnings Growth: 46.5% year-over-year. Insurance Pre-Tax Earnings Decline: 10.8% year-over-year. Warning! GuruFocus has detected 5 Warning Sign with CBU. Is CBU fairly valued? Test your thesis with our free DCF calculator. Release Date: July 28, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Community Financial System Inc (NYSE:CBU) reported a record quarter with continued expansion in net interest income and strong fee performance in banking, employee benefits, and wealth management. The company experienced a significant gain of over $3 million on an insurance investment, showcasing the optionality associated with their presence in the broader insurance space. Community Financial System Inc (NYSE:CBU) has a strong pipeline of M&A opportunities in insurance, which may contribute to revenue expansion in 2027. The company's mortgage pipeline is at its highest point in seven years, indicating strong future performance in this segment. Community Financial System Inc (NYSE:CBU) reported a 14.9% year-over-year increase in overall operating pre-tax pre-provision earnings, with significant growth in banking, employee benefits, and wealth management pre-tax earnings. Insurance revenues fell short of expectations due to lower contingencies, self-premium markets, and organic challenges. The company's insurance segment experienced a 10.8% year-over-year decline in pre-tax earnings. Community Financial System Inc (NYSE:CBU) recorded a $4.6 million provision for credit losses during the second quarter, reflecting ongoing credit risk concerns. Total non-interest expenses increased by 6.7% from the prior year's second quarter, driven by higher salaries, employee benefits, and costs associated with acquisitions and new branches. The company faces competitive pressure in pricing and structures in its markets, which could impact future growth and profitability. Q: Can you provide insights into the competitive environment in upstate New York and the opportunities for loan growth? A: Dimitar Karaivanov, President and CEO, stated that the competitive environment is consistent across their footprint, including New England and Pennsylvania. They are seeing increased competition in pricing and structures, but remain focused on maintaining solid growth rates. The company expects loan growth to be in the 5% to 6% range for the year, with a strong pipeline supporting these targets. Q: What are your expectations for the insurance fee income and contingencies going forward? A: Dimitar Karaivanov noted that insurance revenues have been softer than expected, with about $1 million shortfall in contingencies. The company anticipates some improvement in the second half of the year but does not expect to reach normal growth rates. However, they are optimistic about M&A opportunities in the insurance sector, which could drive future revenue growth. Q: How are the de novo branches performing in terms of deposit gathering? A: Dimitar Karaivanov reported that the de novo branches ended the quarter with $140 million in deposits, aligning with their expectations. While deposit gathering remains challenging across the industry, the company is focused on maintaining a strong balance sheet and optimizing funding strategies without participating in high-cost deposit opportunities. Q: What is the outlook for net interest margin (NIM) and deposit costs? A: Michael Abdo, Executive Vice President, General Counsel, explained that the company expects NIM to expand in the fourth quarter and continue into 2027, driven by variable loan repricing and securities cash flows. Dimitar Karaivanov added that while there may be temporary pressure on deposit costs due to seasonal factors, they do not anticipate significant increases in overall deposit costs due to their strong balance sheet and funding flexibility. Q: Can you elaborate on the company's investments in AI and its potential impact? A: Dimitar Karaivanov highlighted that the company has been investing in AI for over two years, with a focus on efficiency opportunities. They have a dedicated team working on AI initiatives, primarily in app development and product integration. While the impact is not yet fully realized, they expect AI to enhance labor allocation efficiency and potentially improve margins in the future. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in Community Financial System, Inc.? Here are five stocks we like better. Record Q2 performance: GAAP and operating EPS rose to $1.16, while net interest income increased 11.5% year over year to $139.1 million. The net interest margin expanded to 3.49%, marking its ninth consecutive quarter of net interest income growth. Growth outlook remains positive: Management expects 2026 net interest income growth of 10%–11%, loan growth of 5%–6% and deposit growth of 3%–4%. More than $1 billion in securities cash flows over the next 18 months could support loan redeployment and future margin expansion. Insurance business remains a weak spot: Insurance earnings declined 10.8% amid softer premium markets, lower contingencies and organic-growth challenges. Management expects improvement in the second half but does not anticipate a return to normal growth this year. Community Financial System (NYSE:CBU) reported record second-quarter operating results as net interest income expanded for a ninth consecutive quarter, while executives said insurance revenue remained below expectations amid softer premium markets, lower contingencies and organic-growth challenges. GAAP earnings per share were $1.16, up 19.6% from the second quarter of 2025 and 7.4% from the preceding quarter, Chief Financial Officer Marya Burgio Wlos said. Operating earnings per share were also $1.16, compared with $1.04 a year earlier and $1.15 in the first quarter. Operating pre-tax, pre-provision net revenue per share reached a quarterly record of $1.62. → Volatility Is Back and These 3 Market Tollbooths Are Best Positioned to Profit President and CEO Dimitar Karaivanov characterized the period as “another consecutive record quarter,” citing net interest income growth, fee performance in banking, employee benefits and wealth management, and managed recurring expenses. He said credit quality and liquidity remained “top tier,” while noting certain nonrecurring expenses and weaker-than-expected insurance results. Second-quarter net interest income rose to $139.1 million, an increase of $4.4 million, or 3.3%, from the first quarter and $14.4 million, or 11.5%, from a year earlier. The company’s fully tax-equivalent net interest margin increased four basis points sequentially to 3.49%, supported by lower funding costs. → This Tiny AI Supplier Could Be More Important Than the Chipmakers Cost of funds declined two basis points from the prior quarter to 1.18%, primarily because of lower deposit costs. Karaivanov said the company has avoided participating in certain highly priced deposit opportunities, noting that some rates in the market were above wholesale funding costs. He also pointed to the company’s 76% loan-to-deposit ratio and expected securities-portfolio cash flows as providing funding flexibility. The company expects net interest income to grow 10% to 11% for the full year. Management forecast continued margin expansion over the final six months of 2026, with the company exiting the year in the low- to mid-3.5% range. However, Wlos said third-quarter margin could face temporary pressure of between one basis point of expansion and two basis points of contraction, partly because of seasonally higher overnight borrowings. → 2 Stocks Built to Thrive If Inflation Refuses to Fade Management expects more than $1 billion of cash flows from the securities portfolio over the next 18 months, beginning to become meaningful in the fourth quarter. Karaivanov said that redeploying securities yielding about 2% into loans yielding roughly 6% could provide a longer-term margin tailwind. Ending loans increased $151.6 million, or 1.4%, during the second quarter and rose $763.7 million, or 7.3%, from a year earlier. The quarterly increase primarily reflected organic growth in business lending, while year-over-year growth included expansion across business and consumer portfolios. The company’s total deposits declined $159.7 million, or 1.1%, from March 31, primarily due to seasonal municipal deposit outflows. Deposits were up $1.01 billion, or 7.4%, from a year earlier, including $543.7 million assumed through the Santander branch acquisition and $120.1 million from the ClearPoint acquisition. Karaivanov said the company’s de novo branches held approximately $140 million in deposits at the end of the second quarter. Combined with acquired Santander branches in the Lehigh Valley, Community Financial System expects roughly $700 million of new additive funding in growth-expansion markets by year-end. Management expects full-year loan growth of 5% to 6% and deposit growth of 3% to 4%. Karaivanov said commercial lending pipelines remain solid, mortgage activity should contribute more in the third and fourth quarters, and auto lending activity has improved as pricing has become more attractive. The company’s mortgage pipeline was at its highest level in seven years, Karaivanov said, adding that Community Financial System ranked as the No. 2 bank originator in its footprint under the latest HMDA data, compared with No. 5 four years ago. Operating non-interest revenue increased $4.8 million, or 6.4%, from the prior-year quarter and rose $0.3 million sequentially. Higher employee benefits, wealth management and banking fee revenue were partly offset by lower insurance-services revenue. Operating non-interest revenue represented 36% of total operating revenue in the quarter. Karaivanov said employee benefits pre-tax earnings rose 16.2% year over year, wealth management pre-tax earnings increased 46.5%, and banking pre-tax earnings increased 13.2%. Insurance pre-tax earnings declined 10.8%. Insurance revenue has been pressured by meaningfully lower contingencies, soft premium markets and organic challenges, according to Karaivanov. He said approximately $1 million of the year-to-date insurance shortfall versus expectations related to contingencies. While management expects better insurance performance in the second half, Karaivanov said the business is not expected to return to its normal growth rate this year. The company recorded a gain of more than $3 million on an insurance-related investment during the quarter. Karaivanov said the investment returned more than five times its original value. He also described the insurance acquisition pipeline as the strongest it has been and said potential transactions could support revenue expansion in 2027. Total non-interest expense was $137.7 million, up 3.5% from the first quarter and 6.7% from a year earlier. Sequential expenses included a $2.1 million increase in salaries and benefits associated with an additional payroll day and incentive-plan accruals, $0.7 million of ClearPoint-related costs, and a one-time $0.6 million early-termination charge related to a debit-card processing-platform conversion. For the full year, the company expects core non-interest expense of $550 million to $555 million, an increase of 7% to 8% from 2025. The estimate includes approximately $8 million to $9 million of Santander branch-related expenses and $4 million to $5 million associated with ClearPoint, including non-operating intangible-asset amortization. The provision for credit losses was $4.6 million, compared with $5.6 million in the first quarter and $4.1 million a year earlier. The allowance for credit losses increased $1.5 million during the quarter to $91.7 million, or 81 basis points of total loans, primarily reflecting reserve building in business lending. The allowance equaled eight times trailing 12-month net charge-offs. Community Financial System expects full-year credit-loss provisions of $20 million to $25 million and an effective tax rate of 23% to 24%. Community Financial System (NYSE: CBU) is the bank holding company for Community Bank, National Association, a full-service commercial bank headquartered in DeWitt, New York. Through its principal subsidiary, the company offers a range of banking and financial services designed to meet the needs of both consumer and business clients. Its organizational structure centers on community-based banking operations supported by centralized technology, risk management and administrative functions. The company's product offerings include deposit accounts, residential and commercial mortgage loans, commercial and consumer lending, treasury and cash management services, and electronic banking. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Community Financial System Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

Bread Financial Holdings (BFH) came out with quarterly earnings of $3.55 per share, beating the Zacks Consensus Estimate of $2.52 per share. This compares to earnings of $3.14 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +40.87%. A quarter ago, it was expected that this manager of loyalty and rewards programs for retailers and others would post earnings of $3 per share when it actually produced earnings of $4.18, delivering a surprise of +39.33%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Bread Financial, which belongs to the Zacks Financial - Miscellaneous Services industry, posted revenues of $993 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 4.21%. This compares to year-ago revenues of $929 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Bread Financial shares have added about 37.6% since the beginning of the year versus the S&P 500's gain of 9.6%. While Bread Financial has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Bread Financial was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $3.11 on $989.73 million in revenues for the coming quarter and $11.02 on $3.94 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Financial - Miscellaneous Services is currently in the bottom 25% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Community Financial System (CBU), is yet to report results for the quarter ended June 2026. The results are expected to be released on July 28. This bank holding company is expected to post quarterly earnings of $1.19 per share in its upcoming report, which represents a year-over-year change of +22.7%. The consensus EPS estimate for the quarter has been revised 1.6% lower over the last 30 days to the current level. Community Financial System's revenues are expected to be $222.08 million, up 11% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Bread Financial Holdings, Inc. (BFH) : Free Stock Analysis Report Community Financial System, Inc. (CBU) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

SYRACUSE, N.Y., July 22, 2026--(BUSINESS WIRE)--Community Financial System, Inc. (NYSE: CBU) (the "Company") announced that it has declared a quarterly cash dividend of $0.49 per share on its common stock, which represents a $0.02, or 4.26%, increase and an annualized yield of 2.89% based on the closing share price of $67.82 on July 21, 2026. The dividend will be payable on October 13, 2026 to Shareholders of record as of September 15, 2026. President and Chief Executive Officer, Dimitar Karaivanov, commented, "Given the Company’s strong performance in 2026, the Board of Directors is pleased to provide its Shareholders with a larger increase to the dividend this year, and has raised the quarterly dividend from $0.47 per share of common stock to a quarterly dividend of $0.49 per share of common stock. This increase emphasizes our commitment to sustained shareholder returns. Our annual dividend increases over the last 34 years are supported by our strong balance sheet and cash flow generation that provide us with flexibility to return cash to our Shareholders while investing in our long-term future." About Community Financial System, Inc. Community Financial System, Inc. is a diversified financial services company that is focused on four main business lines – banking services, employee benefit services, insurance services and wealth management services. Its banking subsidiary, Community Bank, N.A., is among the country’s 100 largest banking institutions with over $17 billion in assets and operates approximately 200 customer facilities across Upstate New York, Northeastern Pennsylvania, Vermont, Western Massachusetts and Southern New Hampshire. The Company’s Benefit Plans Administrative Services, Inc. subsidiary is a leading provider of employee benefits administration, trust services, collective investment fund administration, and actuarial consulting services to customers on a national scale. The Company’s OneGroup NY, Inc. subsidiary is a top 68 U.S. insurance agency. The Company also offers comprehensive financial planning, trust administration and wealth management services through its Nottingham Financial Group operating unit. The Company is listed on the New York Stock Exchange and the Company’s stock trades under the symbol CBU. For more information about the Company and each of its four main business lines visit https://ir.cfsi.com. This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on the current beliefs and expectations of CBU’s management and are subject to significant risks and uncertainties. Actual results may differ from those set forth in the forward-looking statements. The following factors, among others, could cause the actual results of CBU’s operations to differ materially from its expectations: the macroeconomic and other challenges and uncertainties related to or resulting from current and future economic and market conditions, including the effects on CRE and housing or vehicle prices, unemployment rates, high inflation, U.S. fiscal debt, budget and tax matters, geopolitical matters, tariffs and global economic growth; fiscal and monetary policies of the Federal Reserve Board; the potential adverse effects of unusual and infrequently occurring events; litigation and actions of regulatory authorities; management’s estimates and projections of interest rates and interest rate policies; the effect of changes in the level of checking, savings, or money market account deposit balances and other factors that affect net interest margin; future provisions for credit losses on loans and debt securities; changes in nonperforming assets; ability to contain costs in inflationary conditions; the effect on financial market valuations on CBU’s fee income businesses, including its employee benefit services, wealth management services, and insurance services businesses; the successful integration of operations of its acquisitions and performance of new branches; competition; changes in legislation or regulatory requirements, including capital requirements; and the timing for receiving regulatory approvals and completing merger and acquisition transactions. For more information about factors that could cause actual results to differ materially from CBU’s expectations, refer to its annual, periodic and other reports filed with the Securities and Exchange Commission ("SEC"), including the discussion under the "Risk Factors" section of such reports filed with the SEC and available on CBU’s website at https://ir.cfsi.com and on the SEC’s website at https://sec.gov. Further, any forward-looking statement speaks only as of the date on which it is made, and CBU undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events. View source version on businesswire.com: https://www.businesswire.com/news/home/20260722494152/en/ Contacts For further information, please contact:Marya Burgio Wlos,EVP & Chief Financial OfficerOffice: (315) 299-2946

The market expects Alerus (ALRS) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates. The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 29. On the other hand, if they miss, the stock may move lower. While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise. This company is expected to post quarterly earnings of $0.78 per share in its upcoming report, which represents a year-over-year change of +8.3%. Revenues are expected to be $76.85 million, up 1.9% from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 0.75% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For Alerus, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +4.70%. On the other hand, the stock currently carries a Zacks Rank of #2. So, this combination indicates that Alerus will most likely beat the consensus EPS estimate. Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that Alerus would post earnings of $0.58 per share when it actually produced earnings of $0.89, delivering a surprise of +53.45%. Over the last four quarters, the company has beaten consensus EPS estimates four times. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Alerus appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Another stock from the Zacks Financial - Miscellaneous Services industry, Community Financial System (CBU), is soon expected to post earnings of $1.19 per share for the quarter ended June 2026. This estimate indicates a year-over-year change of +22.7%. Revenues for the quarter are expected to be $222.08 million, up 11% from the year-ago quarter. The consensus EPS estimate for Community Financial has been revised 1.6% lower over the last 30 days to the current level. However, a higher Most Accurate Estimate has resulted in an Earnings ESP of +0.28%. This Earnings ESP, combined with its Zacks Rank #4 (Sell), makes it difficult to conclusively predict that Community Financial will beat the consensus EPS estimate. Over the last four quarters, the company surpassed EPS estimates just once. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Alerus Financial (ALRS) : Free Stock Analysis Report Community Financial System, Inc. (CBU) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research