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Compared to Estimates, Hope Bancorp (HOPE) Q2 Earnings: A Look at Key Metrics

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For the quarter ended June 2023, Hope Bancorp (HOPE - Free Report) reported revenue of $147.7 million, down 4.3% over the same period last year. EPS came in at $0.32, compared to $0.43 in the year-ago quarter.

The reported revenue represents a surprise of +7.21% over the Zacks Consensus Estimate of $137.77 million. With the consensus EPS estimate being $0.30, the EPS surprise was +6.67%.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how Hope Bancorp performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

  • Efficiency Ratio: 59.13% versus 62.92% estimated by three analysts on average.
  • Net Interest Margin: 2.7% compared to the 2.77% average estimate based on three analysts.
  • Net charge-offs to average loans: 0.01% compared to the 0.07% average estimate based on two analysts.
  • Average Balance - Total interest earning assets: $19.39 billion compared to the $18.45 billion average estimate based on two analysts.
  • Total noninterest income: $17.01 million versus the three-analyst average estimate of $11.58 million.
  • Net Interest Income: $130.69 million versus the three-analyst average estimate of $126.20 million.
  • Service fees on deposit accounts: $2.33 million versus the two-analyst average estimate of $2.12 million.
  • Net gains on sales of SBA loans: $1.87 million versus $2.67 million estimated by two analysts on average.
View all Key Company Metrics for Hope Bancorp here>>>

Shares of Hope Bancorp have returned +16.3% over the past month versus the Zacks S&P 500 composite's +4% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.

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