Hancock Whitney Corp (NYSE: HWC) has confirmed the earnings release date for its Q4 2021 earnings, which will be on Tuesday, January 18, 2022, after market close.
What to look for
The company is expected to report a YoY earnings increase on higher revenue when its reports earnings for the quarter ending December 2021. Although immediate price change sustainability and future earnings expectations depend on management discussions on operating conditions, it is worth handicapping the chance of HWC producing a positive EPS surprise.
Earnings: Stockearning’s Estimated EPS for Q4 2021 is expected to be around $1.35 per share, representing a YoY increase of 40.6%. In the third quarter, the company produced an earnings surprise of 12.4%, beating EPS estimates of $1.29 to post EPS of $1.45 per share. Historical EPS Performance shows that in the past 12 quarters, the company has beat EPS estimates eight times (66%) and missed twice (16%).
Revenue: The company expects Q4 2021 revenue of $321.68 million, representing a YoY increase of 0.3%. In the third quarter, pre-provision net revenue was $134.8 million, a 2% drop from a year ago and net interest income was $237.5 million, which was unchanged sequentially.
Stock movement: Hancock Whitney shares have gained 12.8% since the company released its third-quarter earnings. Notably, HWC shares have been UP 6 times out of the past 16 quarters. So, the historical price reaction suggests a 56% probability of the share price going UP once the company reports its fiscal Q4 2021 earnings. According to the Stockearning algorithm, the predicted first-day move is 3%, while the predicted move on the seventh day is 5%.
What analysts are saying
In a research note published to clients and investors on Monday, January 10, 2022, equity research analysts at Jefferies Financial Group decreased their Q1 2023 earnings per share expectations for Hancock Whitney. Haire, an analyst at Jefferies Financial Group, now expects the company to earn $1.16 per share for the quarter, down from $1.19 previously.
Truist analyst Jennifer Demba increased her price target in Hancock Whitney from $45 to $50 but maintained a "Hold" rating in the shares following the Q3 earnings beat. According to the analyst, the company's increasing loan growth forecast gives her more conviction in its productivity targets, with more of its excess liquidity scheduled to be invested in loans and bonds. On the other hand, Hancock Whitney shares are "near to reasonably valued" compared to median peer multiples, according to Demba.
Raymond James’ Michael Rose increased his price target on HWC from $54 to $60 but maintained a “Strong Buy” rating on the stock after its Q3 results topped consensus estimates. Whereas another negative provision prompted the headline beat, Rose informed investors in a research note that core trends were robust, indicating greater than projected core fee income, continuous expenditure reduction, and additional improvement in credit trends.
Keefe Bruyette analyst Christopher McGratty upgraded HWC from “Hold” to “Buy” with a price target of $55. In addition, the analyst upped his investment recommendation for the whole US banking sector and seven individual institutions to Overweight. Early evidence of inflecting loan growth, rising interest rates, and earning asset remixing, according to McGratty in a research report, are three major drivers for a "potentially large positive" earnings revision cycle. Considering the enormous underperformance recently and reduced prices, the analyst feels there is a “compelling case for a catch-up trade for spread lenders.”
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