Home BancShares (HOMB) announced quarterly earnings of $0.50 per share, falling short of the Zacks Consensus Estimate of $0.53 per share. This performance is an improvement over earnings of $0.47 per share from the same period last year, with all figures adjusted for non-recurring items.
This quarterly result signifies an earnings surprise of -5.66%. Last quarter, the bank holding company had estimated earnings of $0.48 per share but exceeded expectations by delivering earnings of $0.52, showcasing a surprise of 8.33%.
Over the past four quarters, the company has beaten consensus EPS estimates three times.
For the quarter ending September 2024, Home BancShares generated revenues of $258 million, which topped the Zacks Consensus Estimate by 0.75%. This figure represents a rise from the previous year’s revenues of $245.35 million. The company has surpassed consensus revenue expectations in all four of the last quarters.
The stock’s immediate price movement and future earnings outlook will largely depend on commentary from management during the earnings call.
Since the start of the year, Home BancShares shares have risen approximately 7.3%, which contrasts with the S&P 500’s increase of 21.9%.
Despite underperforming the market this year, investors are curious about the future trajectory of Home BancShares stock.
There’s no simple answer to this pressing question, but one useful method for investors is to examine the company’s earnings outlook. This not only includes current consensus earnings expectations for upcoming quarters but also recent changes to these estimates.
Research indicates a strong link between short-term stock price shifts and trends in earnings estimate revisions. Investors can monitor these revisions independently or use reliable tools like the Zacks Rank, which is known for effectively utilizing earnings estimate data.
Leading up to this earnings report, the trend for estimate revisions at Home BancShares has been mixed. While this may shift following the recent earnings announcement, it currently results in a Zacks Rank #3 (Hold) rating for the stock, suggesting it is likely to perform in line with the broader market in the near term. A complete list of today’s Zacks #1 Rank (Strong Buy) stocks is available for review.
Changes to estimates for upcoming quarters and the current fiscal year will be closely watched in the coming days. The consensus EPS estimate stands at $0.53 for the next quarter, with expected revenues of $256.43 million, and $2.07 with revenues of $1.01 billion for the full fiscal year.
Investors should also be aware that the industry outlook can significantly influence stock performance. Presently, the Banks – Southeast industry ranks in the bottom 34% among over 250 Zacks industries. Historical data suggests that industries in the top half of Zacks’ rankings outperform those in the bottom half by more than two to one.
Another competitor, Seacoast Banking (SBCF), is scheduled to report its results for the quarter ending September 2024 on October 24. Analysts expect Seacoast to report earnings of $0.36 per share, reflecting a year-over-year decline of 2.7%. The consensus EPS estimate has been revised up by 0.2% in the last 30 days. Seacoast Banking’s expected revenues are projected at $128.57 million, which represents a 6.2% decrease from the same quarter last year.
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Home BancShares, Inc. (HOMB): Free Stock Analysis Report
Seacoast Banking Corporation of Florida (SBCF): Free Stock Analysis Report
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