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Why Is Hancock Whitney (HWC) Down 0.1% Since Its Last Earnings Report?
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It has been about a month since the last earnings report for Hancock Whitney Corporation (HWC - Free Report) . Shares have lost about 0.1% in that time frame.
Will the recent negative trend continue leading up to its next earnings release, or is HWC due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Hancock Whitney Corporation’s second-quarter 2018 adjusted earnings per share of 96 cents surpassed the Zacks Consensus Estimate by a cent. Also, the figure represents an improvement of nearly 41.2% year over year.
Results benefited from an improvement in net interest income and non-interest income, as well as decline in expenses and provisions. Further, loan growth remained solid. However, an increase in non-performing assets and lower net interest margin were the downside.
After considering the impact of several non-recurring items, net income for the quarter came in at $71.2 million or 82 cents per share, up from $52.3 million or 60 cents per share reported in the prior-year quarter.
Revenues Improve, Expenses Decline
Hancock’s net revenues were $280.4 million, up 4.9% year over year. Also, the figure surpassed the Zacks Consensus Estimate of $276.8 million.
Net interest income grew 5.9% year over year to $211.6 million. NIM, on a tax-equivalent basis, came in at 3.40%, contracting 3 basis points year over year.
Non-interest income totaled $68.8 million, reflecting an increase of 2% from the year-ago quarter. However, if one-time amortization of FDIC loss share receivable is excluded from the prior-year figure, the current-quarter income is in line with that of the year-ago quarter.
Total operating expenses decreased 2.5% year over year to $168.6 million. The decline was due to fall in almost all cost components.
Credit Quality: Mixed Bag
Net charge-offs from the non-covered loan portfolio was 0.11% of average total loans, edging down from 0.13% in the year-ago quarter. Also, provision for loan losses declined 40.5% year over year to roughly $8.9 million.
However, total non-performing assets increased 20.1% year over year to $416.5 million.
Strong Balance Sheet, Higher Profitability Ratios & Mixed Capital Ratios
As of Jun 30, 2018, total loans were $19.4 billion, up from $19.1 billion recorded at the prior-quarter end. However, total deposits decreased 1.1% from the prior quarter to $22.2 billion.
Return on average assets was 1.04% at the end of the quarter, up from 0.79% in the prior-year quarter. Moreover, return on average common equity was 9.81% compared with 7.52% at the end of the year-ago quarter.
As of Jun 30, 2018, Tier 1 leverage ratio was 8.65%, down from 8.21% in the year-ago figure. However, Tier 1 risk-based capital ratio was 10.49%, increasing from 10.01% as of Jun 30, 2017.
Outlook
Management continues to expect charge-offs from energy-related credits to be roughly $95 million.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates. There have been four revisions higher for the current quarter compared to one lower.
At this time, HWC has a subpar Growth Score of D. Its Momentum is doing a lot better with a B. The stock was also allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Zacks' style scores indicate that the company's stock is suitable for value and momentum investors.
Outlook
Estimates have been broadly trending upward for the stock and the magnitude of these revisions looks promising. Notably, HWC has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Why Is Hancock Whitney (HWC) Down 0.1% Since Its Last Earnings Report?
It has been about a month since the last earnings report for Hancock Whitney Corporation (HWC - Free Report) . Shares have lost about 0.1% in that time frame.
Will the recent negative trend continue leading up to its next earnings release, or is HWC due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Hancock Whitney's Q2 Earnings Beat, Provisions Decline
Hancock Whitney Corporation’s second-quarter 2018 adjusted earnings per share of 96 cents surpassed the Zacks Consensus Estimate by a cent. Also, the figure represents an improvement of nearly 41.2% year over year.
Results benefited from an improvement in net interest income and non-interest income, as well as decline in expenses and provisions. Further, loan growth remained solid. However, an increase in non-performing assets and lower net interest margin were the downside.
After considering the impact of several non-recurring items, net income for the quarter came in at $71.2 million or 82 cents per share, up from $52.3 million or 60 cents per share reported in the prior-year quarter.
Revenues Improve, Expenses Decline
Hancock’s net revenues were $280.4 million, up 4.9% year over year. Also, the figure surpassed the Zacks Consensus Estimate of $276.8 million.
Net interest income grew 5.9% year over year to $211.6 million. NIM, on a tax-equivalent basis, came in at 3.40%, contracting 3 basis points year over year.
Non-interest income totaled $68.8 million, reflecting an increase of 2% from the year-ago quarter. However, if one-time amortization of FDIC loss share receivable is excluded from the prior-year figure, the current-quarter income is in line with that of the year-ago quarter.
Total operating expenses decreased 2.5% year over year to $168.6 million. The decline was due to fall in almost all cost components.
Credit Quality: Mixed Bag
Net charge-offs from the non-covered loan portfolio was 0.11% of average total loans, edging down from 0.13% in the year-ago quarter. Also, provision for loan losses declined 40.5% year over year to roughly $8.9 million.
However, total non-performing assets increased 20.1% year over year to $416.5 million.
Strong Balance Sheet, Higher Profitability Ratios & Mixed Capital Ratios
As of Jun 30, 2018, total loans were $19.4 billion, up from $19.1 billion recorded at the prior-quarter end. However, total deposits decreased 1.1% from the prior quarter to $22.2 billion.
Return on average assets was 1.04% at the end of the quarter, up from 0.79% in the prior-year quarter. Moreover, return on average common equity was 9.81% compared with 7.52% at the end of the year-ago quarter.
As of Jun 30, 2018, Tier 1 leverage ratio was 8.65%, down from 8.21% in the year-ago figure. However, Tier 1 risk-based capital ratio was 10.49%, increasing from 10.01% as of Jun 30, 2017.
Outlook
Management continues to expect charge-offs from energy-related credits to be roughly $95 million.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates. There have been four revisions higher for the current quarter compared to one lower.
Hancock Whitney Corporation Price and Consensus
Hancock Whitney Corporation Price and Consensus | Hancock Whitney Corporation Quote
VGM Scores
At this time, HWC has a subpar Growth Score of D. Its Momentum is doing a lot better with a B. The stock was also allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Zacks' style scores indicate that the company's stock is suitable for value and momentum investors.
Outlook
Estimates have been broadly trending upward for the stock and the magnitude of these revisions looks promising. Notably, HWC has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.