HDFC Bank Limited (NYSE: HDB) has confirmed the releases date for its Q2 2022 earnings, which will be on Monday, October 18, 2021, after market close.
What to look for
Ahead of the Q2 2022 financial results, the company expects the COVID-19 pandemic to continue impacting results. India has suffered considerably from the impact of the second wave that affected businesses and left millions jobless. When the company released Q1 2022 results, it indicated that retail loans had shrunk 1%, with loan book growth being 14.4% annually. These metrics are likely to continue impacting the results and will reflect in Q2 2022 earnings.
Earnings: Stockearning’s Estimated EPS is likely to improve from the previous quarter's EPS of $0.58. Historical EPS performance shows that the company has, in the past 12 quarters, beat estimates six times (50%) and missed only twice (16%). In the June quarter, the company reported EPS of $0.58, missing $0.59 per share estimates.
Revenue: In Q1 2022, the company reported an 18% growth in net revenues to INR23,297 crores thanks to 13.2% deposit growth and 14.4% advances growth. Other incomes were INR6,289 crores, up 54% YoY but declined 17% QoQ. The company said that the impact of the pandemic, including consumer behavior changes, restrictions on individuals, and business activity, has resulted in volatility in the financial markets leading to a significant decrease in economic activities globally.
Stock movement: The share price was UP 4 times over the past eight quarters following previous earnings releases. So, the Historical price reaction predicts a 50% probability of share price going UP after the bank releases its Q3 2021 earnings. According to the Stockearning algorithm, the predicted first-day move is 2%, and the predicted move on the seventh day is 3%.
What analysts are saying
Yes Securities has a “Buy” rating on HDFC Bank with a price target of Rs 1675. Currently, HDFC Bank's share price is Rs 1615.05. Early this year, the firm recommended the buy rating on HDFC Bank and revised earnings estimates for FY21/22/23 by 10%, 3%, and 4%, respectively.
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