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Will Higher Revenues Drive Huntington's (HBAN) Q3 Earnings?
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Huntington Bancshares Incorporated (HBAN - Free Report) is scheduled to report third-quarter 2017 results on Oct 25, before the market opens. The company’s earnings and revenues are expected to grow on a year-over-year basis.
For the third quarter, Huntington is expected to report impressive results supported by robust organic growth and benefits from the FirstMerit acquisition. The Zacks Consensus Estimate for to-be-reported quarter earnings of 25 cents per share indicates a 15.7% year-over-year improvement. Further, estimates for revenues reflect 18.5% year-over-year growth.
Huntington has an impressive earnings surprise history. It topped earnings estimates in three of the trailing four quarters, with an average positive surprise of 5.6%.
In the last quarter, the company surpassed the Zacks Consensus Estimates driven by higher revenues and continual growth in both loan and deposit balances. However, elevated expenses and higher net charge-offs were the primary headwinds.
Huntington Bancshares Incorporated Price and EPS Surprise
Revenues Might Grow: Huntington’s revenues are likely to improve in the to-be-reported quarter, supported by synergies from the FirstMerit acquisition. Further, expanding net interest margin and decent loan growth during the quarter will boost net interest income. The Zacks Consensus Estimate for average interest-earning assets of $93.2 billion reflects 1.6% sequential growth.
Expenses Likely to Decline: Management is expected to implement all cost savings related to the acquisition of FirstMerit during the quarter. Also, there were no major outflows related to legal settlements that might impact the firm’s earnings unusually in the to-be-reported quarter.
The consensus estimate for efficiency ratio is 58%, down 5 basis points sequentially.
Credit Quality Might Worsen: The Zacks Consensus Estimate for allowance for loans and lease losses of $687 million indicates a 2.8% increase from the last quarter. Also, net charge-offs are projected to be $40 million, a rise of 10.5% sequentially.
Why a Likely Positive Surprise?
According to our proven model, Huntington has the right combination of two key ingredients — positive Earnings ESP and a Zacks Rank #3 (Hold) or better — to increase the odds of an earnings beat.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks ESP: The company’s has Earnings ESP of +1.13%.
Zacks Rank: Huntington currently carries a Zacks Rank of 3
Huntington’s activities during the quarter, however, failed to win analysts’ confidence. As a result, the Zacks Consensus Estimate for the quarter remained unchanged at 25 cents, over the last seven days.
Other Stocks That Warrant a Look
Here are some other stocks you may want to consider, as according to our model they have the right combination of elements to post an earnings beat in their upcoming releases.
Franklin Resources, Inc. (BEN - Free Report) has an Earnings ESP of +0.56% and a Zacks Rank #2 (Buy). It is slated to report third-quarter results on Oct 26.
Santander Consumer USA Holdings Inc.’s Earnings ESP is +6.54% and it carries a Zacks Rank of 2. The company is expected to release third-quarter results on Oct 27.
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Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
Image: Bigstock
Will Higher Revenues Drive Huntington's (HBAN) Q3 Earnings?
Huntington Bancshares Incorporated (HBAN - Free Report) is scheduled to report third-quarter 2017 results on Oct 25, before the market opens. The company’s earnings and revenues are expected to grow on a year-over-year basis.
For the third quarter, Huntington is expected to report impressive results supported by robust organic growth and benefits from the FirstMerit acquisition. The Zacks Consensus Estimate for to-be-reported quarter earnings of 25 cents per share indicates a 15.7% year-over-year improvement. Further, estimates for revenues reflect 18.5% year-over-year growth.
Huntington has an impressive earnings surprise history. It topped earnings estimates in three of the trailing four quarters, with an average positive surprise of 5.6%.
In the last quarter, the company surpassed the Zacks Consensus Estimates driven by higher revenues and continual growth in both loan and deposit balances. However, elevated expenses and higher net charge-offs were the primary headwinds.
Huntington Bancshares Incorporated Price and EPS Surprise
Huntington Bancshares Incorporated Price and EPS Surprise | Huntington Bancshares Incorporated Quote
Factors That Might Influence Q3 Results
Revenues Might Grow: Huntington’s revenues are likely to improve in the to-be-reported quarter, supported by synergies from the FirstMerit acquisition. Further, expanding net interest margin and decent loan growth during the quarter will boost net interest income. The Zacks Consensus Estimate for average interest-earning assets of $93.2 billion reflects 1.6% sequential growth.
Expenses Likely to Decline: Management is expected to implement all cost savings related to the acquisition of FirstMerit during the quarter. Also, there were no major outflows related to legal settlements that might impact the firm’s earnings unusually in the to-be-reported quarter.
The consensus estimate for efficiency ratio is 58%, down 5 basis points sequentially.
Credit Quality Might Worsen: The Zacks Consensus Estimate for allowance for loans and lease losses of $687 million indicates a 2.8% increase from the last quarter. Also, net charge-offs are projected to be $40 million, a rise of 10.5% sequentially.
Why a Likely Positive Surprise?
According to our proven model, Huntington has the right combination of two key ingredients — positive Earnings ESP and a Zacks Rank #3 (Hold) or better — to increase the odds of an earnings beat.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks ESP: The company’s has Earnings ESP of +1.13%.
Zacks Rank: Huntington currently carries a Zacks Rank of 3
Huntington’s activities during the quarter, however, failed to win analysts’ confidence. As a result, the Zacks Consensus Estimate for the quarter remained unchanged at 25 cents, over the last seven days.
Other Stocks That Warrant a Look
Here are some other stocks you may want to consider, as according to our model they have the right combination of elements to post an earnings beat in their upcoming releases.
Franklin Resources, Inc. (BEN - Free Report) has an Earnings ESP of +0.56% and a Zacks Rank #2 (Buy). It is slated to report third-quarter results on Oct 26.
Santander Consumer USA Holdings Inc.’s Earnings ESP is +6.54% and it carries a Zacks Rank of 2. The company is expected to release third-quarter results on Oct 27.
Lazard Ltd. (LAZ - Free Report) has an Earnings ESP of +1.39% and a Zacks Rank #1 (Strong Buy). It is scheduled to report third-quarter results on Oct 26. You can see the complete list of today’s Zacks #1 Rank stocks here.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
See This Ticker Free >>