Huntington Bancshares Set to Report Strong Q1 Earnings; Analysts Optimistic

Huntington Bancshares Incorporated (HBAN), valued at a market cap of $18.4 billion, operates as a diversified regional bank holding company. The Columbus, Ohio-based entity, through its subsidiary The Huntington National Bank, provides various financial services, including commercial, consumer, and mortgage banking, in addition to wealth and treasury management and digital banking solutions. The company is anticipated to announce its fiscal Q1 earnings results on Thursday, April 17.

Q1 Earnings Projections and Analyst Sentiment

Prior to this financial event, analysts forecast the bank to report a profit of $0.31 per share, reflecting a 10.7% increase from $0.28 per share in the same quarter last year. Notably, HBAN has surpassed Wall Street’s EPS estimates in each of the last four quarters, marking a consistent performance that investors often seek.

Review of Recent Performance

In the fourth quarter, Huntington Bancshares recorded an EPS of $0.34, exceeding consensus estimates by a notable 9.7%. This strong performance was attributed to robust net interest income, effective cost management, and stable credit quality. Additionally, the bank benefited from increased yields on earning assets in a favorable interest rate environment while maintaining disciplined cost controls and a resilient loan portfolio.

Future Earnings Outlook

Looking ahead to fiscal 2025, analysts are confident that HBAN will report an EPS of $1.38 per share, a rise of 11.3% from the previous fiscal year’s $1.24. Furthermore, projections indicate that EPS could increase by 13% year-over-year to reach $1.56 per share by fiscal 2026.

Stock Performance Context

Over the past year, shares of HBAN have declined by 6.8%. This performance contrasts with the S&P 500 Index’s ($SPX) slight decline of 1.4% and the Financial Select Sector SPDR Fund’s (XLF) increase of 7.3% during the same timeframe.

Market Reaction and Analyst Ratings

Following the release of Q4 2024 earnings, shares of Huntington Bancshares saw a 1% increase on January 17. The quarterly profit more than doubled, propelled by significant gains in capital markets performance and higher net interest income. Revenue from capital markets and advisory services surged by 74% to $120 million, with wealth and asset management revenue increasing by 8% to $93 million.

Analyst outlooks on Huntington Bancshares’ stock are moderately optimistic, reflected in an overall “Moderate Buy” rating. Among the 19 analysts tracking HBAN, 12 recommend a “Strong Buy,” one a “Moderate Buy,” five suggest a “Hold,” and one assigns a “Strong Sell.” The average analyst price target sits at $18.50, indicating a potential upside of 46.8% from current market levels.

On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.

 

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