Zions Bancorporation National Association Q4 Earnings: Can ZION Hit Its $1.10 EPS Target?

in EARNINGS/INVESTING IDEAS by

Zions Bancorporation, National Association (NASDAQGS:ZION) is scheduled to report Q4 earnings results on Tuesday, January 21, 2020, at 5:30 PM ET. You can find the webcast link and press release here.

The company is expected to report earnings of $1.10/share on revenue of $708 million after markets close for trading. The consensus earnings per share (EPS) of $1.10/share is based on a poll of 17 analysts and represents a growth of 1.9% over the same quarter last year when the company reported earnings of $1.08/share.

The revenue forecast of $708 million based on a poll of 10 analysts implies a year-over-year (YoY) decline of -1.9%. Last year the company reported $722 million in revenue for the quarter.

Expected to report EPS growth of $0.02/share for Q4, 2019
Metric Expected Prior Year YoY Change
Revenue $708.00 $722.00 -1.9%
EPS $1.10 $1.08 1.9%

Bullish investors in Zions hope that the company’s track record of strong customer service and long-standing customer relationships will continue to yield loyalty and inexpensive bank deposits. Zions’ loan portfolio though is heavily (greater than 25%) made up of commercial real estate and construction loans that make the company’s earnings especially sensitive to a pullback in commercial real estate.

Earnings Call Trends

Historically, management has exceeded analyst expectations 5 out of the last 8 tracked quarters, and missed expectations 3 quarters. What are your expectations from Zions Bancorporation National Association for earnings this quarter? Let us know in the comments!

Analyst Expected vs. Reported EPS
Quarter Expected Reported Surprise Result
Q3, 2019 $1.08 $1.17 8.3% Beat
Q2, 2019 $1.10 $0.99 -10.0% Missed
Q1, 2019 $1.05 $1.04 -1.0% Missed
Q4, 2018 $1.05 $1.08 2.9% Beat
Q3, 2018 $0.96 $1.04 8.3% Beat
Q2, 2018 $0.92 $0.89 -3.3% Missed
Q1, 2018 $0.82 $1.09 32.9% Beat
Q4, 2017 $0.73 $0.80 9.6% Beat

In the following table, we summarize the company’s stock price movements after earnings releases. The “Price Day Prior” column shows the closing stock price on the day before the earnings report, and the “Price Next Day” column shows the stock price at the end of the trading day after the earnings report.

After the last earnings report for the period ending September 30, 2019, the stock price reacted by increasing by 7.5%.

Stock Price Performance After Earnings
Report Date Price Day Prior Price Next Day Change % Result
2019-10-21 $44.72 $48.08 7.5% Increase
2019-07-22 $46.10 $42.83 -7.1% Decline
2019-04-22 $47.30 $48.84 3.3% Increase
2019-01-22 $47.05 $48.11 2.3% Increase

Fundamentals And Technical Analysis

Zions Bancorporation National Association is currently trading at $50.74/share, flat for the day. The company is trading at approximately 96.7% of its 52-week high of $52.48/share.

The company’s stock price is up 5.5% since the last earnings report and down -0.5% over the previous week. The company’s 14 Day Relative Price Index (RSI) of 49.69 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.

NASDAQGS:ZION Stock Price Chart Source: Finbox

The current share price implies a price-to-earnings (P/E) multiple of 10.1x and a forward P/E multiple of 10.7x. Zions’s current share price also implies a price-to-book (P/B) multiple of 1.2x. The following table summarizes some other key fundamental ratios:

Data as of January 20, 2020
Metric Value
Last Fiscal Period FY2019.Q3
Period End Date September 30, 2019
Stock Price (Current) $50.74
P/E Ratio 10.1x
P/E Ratio (Fwd) 10.7x
PEG Ratio -2.5
Total Debt to Capital (%) 39.8%
Levered Free Cash Flow $564 million

Source: Finbox

Company Profile: Zions Bancorporation, National Association

Zions Bancorporation, National Association is a mid-cap stock with a market capitalization of $8.649 billion and a total enterprise value of -. The company operates in the Financial sector and the Banks industry.

Zions Bancorporation, National Association provides various banking and related services primarily in Arizona, California, Colorado, Idaho, Nevada, New Mexico, Oregon, Texas, Utah, Washington, and Wyoming. The company offers community banking services, such as small and medium-sized business and corporate banking; commercial and residential development, construction, and term lending; retail banking; treasury cash management and related products and services; residential mortgage servicing and lending services; trust and wealth management services; capital markets services, including municipal finance advisory and underwriting; and investment services. It also offers personal banking services to individuals, including home mortgages, bankcards, other installment loans, home equity lines of credit, checking accounts, savings accounts, certificates of deposit of various types and maturities, trust services, safe deposit facilities, and Internet and mobile banking services.

In addition, the company provides self-directed brokerage services; small business administration lending and secondary market agricultural real estate mortgage loans; corporate trust services for municipalities; and bond transfer, stock transfer, and escrow services. As of December 31, 2018, it operated 433 branches.

The company was formerly known as ZB, National Association and changed its name to Zions Bancorporation, National Association in September 2018. Zions Bancorporation, National Association was founded in 1873 and is headquartered in Salt Lake City, Utah.

Expertise: financial modeling, mergers & acquisitions. Andy is also a founder at finbox.io, where he’s focused on building tools that make it faster and easier for investors to do investment research. Andy’s background is in investment banking where he led the analysis on over 50 board advisory engagements involving mergers and acquisitions, fairness opinions and solvency opinions. Some of his board advisory highlights: - Sears Holdings Corp.’s $620 mm spin-off via rights offering of Sears Outlet, Hometown Stores and Sears Hardware Stores. - Cerberus Capital Management’s $3.3 bn acquisition of SUPERVALU Inc.’s New Albertsons, Inc. assets. Andy can be reached at andy@finbox.io or at +1 (516) 778-6257.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.