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Bank Stocks' Q4 Earnings on Jan 23: BOH, CBU, ZION, PRK
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The fourth-quarter results reported by the banks so far show a decent improvement, thanks to a favorable backdrop and the Trump effect. Based on the performance of the sector so far, one could reasonably expect strong growth in loans this time around. Moreover, trading revenues for most of the banks should continue rising on the back of strength in fixed income and currencies.
However, any benefit from the Fed rate hike in Dec 16 is less likely to be recorded in the Q4 results. Also, provisions for credit losses are estimated to increase due to rising credit card debt, while energy loans are less likely to lead to any significant adverse impact on the provisions.
Notably, per our latest Earnings Outlook report, overall earnings are expected to increase 11.3% for the major banks and 11.9% for banks & thrifts in Q4.
Let’s take a look at the four banks that are likely to announce their fourth-quarter and 2016 results on Jan 23, 2017.
Bank of Hawaii Corporation (BOH - Free Report) is slated to report its results before the opening bell. The company’s Zacks Consensus Estimate of $1.02 has remained stable over the past 30 days. Notably, the figure represents year-over-year growth of 3.4%.
However, the company is less likely to post an earnings beat this quarter because it doesn’t have the right combination – a positive Earnings ESP and a Zacks Rank #3 (Hold) or higher. It has an Earnings ESP of -0.98% and carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Nonetheless, the company has surpassed the Zacks Consensus Estimate in all the trailing four quarters, with an average beat of 8.8%, as depicted in the chart below:
The Zacks Consensus Estimate of Community Bank System, Inc. (CBU - Free Report) , which is also set to report results before the market opens, remained stable over the past 30 days. Its estimate of 58 cents represents year-over-year growth of 4.2%.
However, we cannot conclusively predict an earnings beat in the to-be-reported quarter because it carries a Zacks Rank #3 and has an Earnings ESP of 0.00%.
Notably, the company witnessed an average positive surprise of 0.5% in the trailing four quarters as depicted in the chart below:
Park National Corporation (PRK - Free Report) currently carries a Zacks Rank #2. However, we cannot conclusively predict whether it will be able to beat the Zacks Consensus Estimate in the quarter because it has an Earnings ESP of 0.00%.
Notably, its Zacks Consensus Estimate of $1.10 has remained stable over the past 30 days. However, the figure represents a year-over-year decline of 19.1%.
Also, the company lagged the Zacks Consensus Estimate in three of the trailing four quarters as depicted in the chart below:
Zions Bancorporation (ZION - Free Report) is scheduled to report results after the market closes. Despite it currently sporting a Zacks Rank #1, it cannot be predicted whether the company will be able to beat the Zacks Consensus Estimate, as it has an Earnings ESP of 0.00%.
Total revenues are expected to increase during the quarter. Also, continued investment in franchise is likely to keep expenses stable. However, despite expectations of lower energy-related losses on a year-over-year basis, the company’s oilfield services portfolio is likely to hamper its asset quality. (Read more: Will Rally Continue for Zions Stock Post Q4 Earnings?)
Notably, the company surpassed the Zacks Consensus Estimate in three of the trailing four quarters, as depicted in the chart below:
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Bank Stocks' Q4 Earnings on Jan 23: BOH, CBU, ZION, PRK
The fourth-quarter results reported by the banks so far show a decent improvement, thanks to a favorable backdrop and the Trump effect. Based on the performance of the sector so far, one could reasonably expect strong growth in loans this time around. Moreover, trading revenues for most of the banks should continue rising on the back of strength in fixed income and currencies.
However, any benefit from the Fed rate hike in Dec 16 is less likely to be recorded in the Q4 results. Also, provisions for credit losses are estimated to increase due to rising credit card debt, while energy loans are less likely to lead to any significant adverse impact on the provisions.
Notably, per our latest Earnings Outlook report, overall earnings are expected to increase 11.3% for the major banks and 11.9% for banks & thrifts in Q4.
Let’s take a look at the four banks that are likely to announce their fourth-quarter and 2016 results on Jan 23, 2017.
Bank of Hawaii Corporation (BOH - Free Report) is slated to report its results before the opening bell. The company’s Zacks Consensus Estimate of $1.02 has remained stable over the past 30 days. Notably, the figure represents year-over-year growth of 3.4%.
However, the company is less likely to post an earnings beat this quarter because it doesn’t have the right combination – a positive Earnings ESP and a Zacks Rank #3 (Hold) or higher. It has an Earnings ESP of -0.98% and carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Nonetheless, the company has surpassed the Zacks Consensus Estimate in all the trailing four quarters, with an average beat of 8.8%, as depicted in the chart below:
Bank of Hawaii Corp. Price and EPS Surprise
Bank of Hawaii Corp. Price and EPS Surprise | Bank of Hawaii Corp. Quote
The Zacks Consensus Estimate of Community Bank System, Inc. (CBU - Free Report) , which is also set to report results before the market opens, remained stable over the past 30 days. Its estimate of 58 cents represents year-over-year growth of 4.2%.
However, we cannot conclusively predict an earnings beat in the to-be-reported quarter because it carries a Zacks Rank #3 and has an Earnings ESP of 0.00%.
Notably, the company witnessed an average positive surprise of 0.5% in the trailing four quarters as depicted in the chart below:
Community Bank System Inc. Price and EPS Surprise
Community Bank System Inc. Price and EPS Surprise | Community Bank System Inc. Quote
Park National Corporation (PRK - Free Report) currently carries a Zacks Rank #2. However, we cannot conclusively predict whether it will be able to beat the Zacks Consensus Estimate in the quarter because it has an Earnings ESP of 0.00%.
Notably, its Zacks Consensus Estimate of $1.10 has remained stable over the past 30 days. However, the figure represents a year-over-year decline of 19.1%.
Also, the company lagged the Zacks Consensus Estimate in three of the trailing four quarters as depicted in the chart below:
Park National Corp. Price and EPS Surprise
Park National Corp. Price and EPS Surprise | Park National Corp. Quote
Zions Bancorporation (ZION - Free Report) is scheduled to report results after the market closes. Despite it currently sporting a Zacks Rank #1, it cannot be predicted whether the company will be able to beat the Zacks Consensus Estimate, as it has an Earnings ESP of 0.00%.
Total revenues are expected to increase during the quarter. Also, continued investment in franchise is likely to keep expenses stable. However, despite expectations of lower energy-related losses on a year-over-year basis, the company’s oilfield services portfolio is likely to hamper its asset quality. (Read more: Will Rally Continue for Zions Stock Post Q4 Earnings?)
Notably, the company surpassed the Zacks Consensus Estimate in three of the trailing four quarters, as depicted in the chart below:
Zions Bancorp Price and EPS Surprise
Zions Bancorp Price and EPS Surprise | Zions Bancorp Quote
Now See Our Private Investment Ideas
While the above ideas are being shared with the public, other trades are hidden from everyone but selected members. Would you like to peek behind the curtain and view them? Starting today, for the next month, you can follow all Zacks' private buys and sells in real time from value to momentum . . . from stocks under $10 to ETF and option moves . . . from insider trades to companies that are about to report positive earnings surprises (we've called them with 80%+ accuracy). You can even look inside portfolios so exclusive that they are normally closed to new investors. Click here for Zacks' secret trades >>