Home BancShares Q3 revenue rises on net interest income strength

By Reuters News


Overview

  • U.S. bank holding company's Q3 revenue rose but missed analyst expectations

  • Adjusted EPS for Q3 beat analyst expectations

  • Company repurchased 1.3 mln shares in Q3 and raised dividend


Outlook

  • Company did not provide specific guidance for future quarters or the full year


Result Drivers

  • NET INTEREST INCOME - Co said strong net interest income generation and lower credit loss expense drove results

  • REVENUE GROWTH - Q3 revenue growth reflected continued strength in net interest income and the company's banking operations

  • FUNDING COSTS - Co said decreased interest expense reflected improved funding costs


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Miss

$288.4 mln

$294.27 mln (7 Analysts)

Q3 Adjusted EPS

Beat

$0.65

$0.64 (7 Analysts)

Q3 EPS

$0.65

Q3 Adjusted Net Income

Beat

$129.1 mln

$126.58 mln (7 Analysts)

Q3 Net Income

$129.5 mln

Q3 ROE

11.24%


Analyst Coverage

  • The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the banks peer group is "buy."

  • Wall Street's median 12-month price target for Home BancShares Inc is $32.00, about 13.1% above its October 14 closing price of $28.29

  • The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 11 three months ago


Reuters Recommended Reads

  • Oct 14 - US banks post solid third-quarter loan growth, but face more competition for deposits

  • Oct 13 - Citigroup Q3 revenue rises, partly on strength in services, wealth segments

  • Oct 14 - Equity Bancshares Q3 core EPS rises on loan growth, lifts dividend


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

Capital Com is an execution-only service provider. The present material must be regarded as marketing communication and should not be interpreted as investment research or investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents. We do not make any representations or warranty on the accuracy or completeness of the information that is provided on this page. If you rely on the information on this page, then you do so entirely at your own risk