CVB Financial (CVBF) Q4 2019 Earnings Prep

in EARNINGS/INVESTING IDEAS by

CVB Financial Corp. (NASDAQGS:CVBF) is scheduled to report Q4 earnings results on Wednesday, January 22, 2020.

The company is expected to report earnings of $0.36/share on revenue of $119.6 million. The consensus earnings per share (EPS) of $0.36/share is based on a poll of 5 analysts and represents a growth of 2.4% over the same quarter last year when the company reported earnings of $0.35/share.

The revenue forecast of $119.6 million based on a poll of 3 analysts implies a year-over-year (YoY) decline of -3.7%. Last year the company reported $124.3 million in revenue for the quarter.

Expected to report EPS growth of $0.01/share for Q4, 2019
Metric Expected Prior Year YoY Change
Revenue $119.60 $124.25 -3.7%
EPS $0.36 $0.35 2.4%

Earnings Call Trends

Historically, management has exceeded analyst expectations 7 out of the last 8 tracked quarters, and missed expectations 1 quarter.

What are your expectations from CVB Financial for earnings this quarter? Let us know in the comments!

Analyst Expected vs. Reported EPS
Quarter Expected Reported Surprise Result
Q3, 2019 $0.37 $0.36 -2.3% Missed
Q2, 2019 $0.37 $0.37 1.0% Beat
Q1, 2019 $0.35 $0.36 3.3% Beat
Q4, 2018 $0.34 $0.35 3.4% Beat
Q3, 2018 $0.33 $0.34 4.6% Beat
Q2, 2018 $0.30 $0.32 7.9% Beat
Q1, 2018 $0.30 $0.32 7.3% Beat
Q4, 2017 $0.27 $0.28 3.7% 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 -4.7%.

Stock Price Performance After Earnings
Report Date Price Day Prior Price Next Day Change % Result
2019-10-23 $21.42 $20.42 -4.7% Decline
2019-07-24 $20.53 $21.44 4.4% Increase
2019-04-24 $21.47 $21.61 0.7% Increase
2019-01-23 $22.12 $21.91 -0.9% Decline

Fundamentals And Technical Analysis

CVB Financial is currently trading at $21.50/share, down -1.2% for the day. The company is trading at approximately 92.8% of its 52-week high of $23.18/share. The company’s stock price is up 5.3% since the last earnings report and up 0.8% over the previous week.

The company’s 14 Day Relative Price Index (RSI) of 60.47 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.

NASDAQGS:CVBF Stock Price Chart Source: Finbox

The current share price implies a price-to-earnings (P/E) multiple of 15.3x and a forward P/E multiple of 15.0x. CVB’s current share price also implies a price-to-book (P/B) multiple of 1.6x. 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) $21.50
P/E Ratio 15.3x
P/E Ratio (Fwd) 15.0x
PEG Ratio -3.5
Total Debt to Capital (%) 13.5%
Levered Free Cash Flow $195.5 million
Enterprise Value / EBITDA

Source: Finbox

Company Profile: CVB Financial Corp.

CVB Financial Corp. is a mid-cap stock with a market capitalization of $3.049 billion. The company operates in the Financial sector and the Banks industry.

CVB operates as a bank holding company for Citizens Business Bank that provides banking and financial products and services. The company offers checking, savings, and money market accounts, as well as time certificates of deposit; and serves as a federal tax depository for business customers.

The company also provides commercial lending products comprising lines of credit and other working capital financings, accounts receivable lending, and letters of credit; loans to finance the operating needs of wholesale dairy farm operations, cattle feeders, livestock raisers, and farmers; lease financing services for municipal governments; commercial real estate and construction loans that are secured by owner-occupied and investor-owned properties; and consumer financing products, including automobile leasing and financing, lines of credit, credit cards, home mortgages, and home equity loans and lines of credit.

In addition, the company offers various specialized services, such as cash management systems for monitoring cash flow, a credit card program for merchants, courier pick-up and delivery, payroll services, remote deposit capture, electronic funds transfer, and online account access.

Further, it provides trust and investment-related services to customers through its CitizensTrust Division, such as fiduciary services, mutual funds, annuities, 401(k) plans, and individual investment accounts.

The company’s customers consist primarily of small to mid-sized businesses and individuals located in the Inland Empire, Los Angeles County, Orange County, San Diego County, Ventura County, Santa Barbara County, and the Central Valley area of California.

As of December 31, 2018, the company operated 68 banking centers and 3 trust office locations. CVB Financial Corp. was founded in 1974 and is headquartered in Ontario, California.

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