Associated Banc-Corp (ASB) Q4 Earnings: What Can You Expect?

in EARNINGS/INVESTING IDEAS by

Associated Banc-Corp (NYSE:ASB) is scheduled to report Q4 earnings results on January 23, 2020 after markets close for trading. The company is expected to report earnings of $0.43/share on revenue of $300.3 million. The consensus earnings per share (EPS) of $0.43/share is based on a poll of 9 analysts and represents a decline of -14.0% over the same quarter last year when the company reported earnings of $0.50/share.

The revenue forecast of $300.3 million based on a poll of 5 analysts implies a year-over-year (YoY) decline of -3.7%. Last year the company reported $311.7 million in revenue for the quarter.

Expected to report EPS decline of -$0.07/share for Q4, 2019
Metric Expected Prior Year YoY Change
Revenue $300.30 $311.74 -3.7%
EPS $0.43 $0.50 -14.0%

Earnings Call Trends

Historically, management has exceeded analyst expectations 5 out of the last 8 tracked quarters, missed 2 quarters, and met expectations 1 quarter.

What are your expectations from Associated Banc-Corp for earnings this quarter? Let us know in the comments!

Analyst Expected vs. Reported EPS
Quarter Expected Reported Surprise Result
Q3, 2019 $0.47 $0.50 6.4% Beat
Q2, 2019 $0.50 $0.51 2.0% Beat
Q1, 2019 $0.51 $0.50 -2.0% Missed
Q4, 2018 $0.49 $0.50 2.0% Beat
Q3, 2018 $0.49 $0.49 0.0% Meet
Q2, 2018 $0.47 $0.50 5.3% Beat
Q1, 2018 $0.41 $0.40 -2.4% Missed
Q4, 2017 $0.38 $0.41 7.9% 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 falling by -2.0%.

Stock Price Performance After Earnings
Report Date Price Day Prior Price Next Day Change % Result
2019-10-24 $20.65 $20.23 -2.0% Decline
2019-07-25 $21.36 $21.54 0.8% Increase
2019-04-25 $22.40 $22.33 -0.3% Decline
2019-01-24 $21.29 $22.03 3.5% Increase

Fundamentals And Technical Analysis

Associated Banc-Corp is currently trading at $20.83/share, down -1.4% for the day. The company is trading at approximately 87.4% of its 52-week high of $23.84/share. The company’s stock price is up 3.0% since the last earnings report and down -0.8% over the previous week.

The company’s 14 Day Relative Price Index (RSI) of 44.99 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.

NYSE:ASB Stock Price Chart Source: Finbox

The current share price implies a price-to-earnings (P/E) multiple of 9.6x and a forward P/E multiple of 10.7x. Associated Banc-Corp’s current share price also implies a price-to-book (P/B) multiple of 0.9x. The following table summarizes some other key fundamental ratios:

Data as of January 21, 2020
Metric Value
Last Fiscal Period FY2019.Q3
Period End Date September 30, 2019
Stock Price (Current) $20.83
P/E Ratio 9.6x
P/E Ratio (Fwd) 10.7x
PEG Ratio -1.0
Total Debt to Capital (%) 52.1%
Levered Free Cash Flow $590.5 million
Market capitalization $3.315 billion

Source: Finbox

Company Profile: Associated Banc-Corp

Associated Banc-Corp is a mid-cap stock with a market capitalization of $3.315 billion. The company operates in the Financial sector and the Banks industry.

Associated Banc-Corp, a bank holding company, provides various banking and nonbanking products to individuals and businesses in Wisconsin, Illinois, and Minnesota.

Its Corporate and Commercial Specialty segment offers deposit and cash management solutions, such as commercial checking and interest-bearing deposit products, cash vault and night depository services, liquidity solutions, payables and receivables solutions, and information services; and lending solutions, including commercial loans and lines of credit, commercial real estate financing, construction loans, letters of credit, leasing, asset-based lending, and loan syndications. This segment also provides specialized financial services comprising interest rate risk management, foreign exchange solutions, and commodity hedging.

The company’s Community, Consumer, and Business segment offers checking, credit, debit, and pre-paid cards, online banking and bill pay, and money transfer services; residential mortgages, home equity loans and lines of credit, personal and installment loans, real estate financing, business loans, and business lines of credit; savings, money market deposit accounts, IRA accounts, certificates of deposit, and fixed and variable annuities, as well as full-service, discount, and online investment brokerage; investment advisory services; trust and investment management accounts; and insurance and other related products and services. This segment also engages in the administration of pension, profit-sharing and other employee benefit plans, fiduciary and corporate agency services, and institutional asset management services.

Its Risk Management and Shared Services segment provides corporate risk management, credit administration, finance, treasury, operations, and technology services.

As of July 03, 2019, the company operated approximately 240 banking locations serving approximately 120 communities. Associated Banc-Corp was founded in 1861 and is headquartered in Green Bay, Wisconsin.

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.

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