First Financial (FFBC) Q4 2019 Earnings Prep

in EARNINGS/INVESTING IDEAS by

First Financial Bancorp. (NASDAQGS:FFBC) is scheduled to report Q4 earnings results after the market close on Thursday, January 23, 2020. Management will hold a teleconference and webcast to discuss results on Friday, January 24, 2020, at 8:30 a.m.

The company is expected to report earnings of $0.53/share on revenue of $155.2 million. The consensus earnings per share (EPS) of $0.53/share is based on a poll of 5 analysts and represents a decline of -13.1% over the same quarter last year when the company reported earnings of $0.61/share.

The revenue forecast of $155.2 million based on a poll of 4 analysts implies a year-over-year (YoY) decline of -1.1%. Last year the company reported $156.9 million in revenue for the quarter.

Expected to report EPS decline of -$0.08/share for Q4, 2019
Metric Expected Prior Year YoY Change
Revenue $155.15 $156.91 -1.1%
EPS $0.53 $0.61 -13.1%

Earnings Call Trends

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

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

Analyst Expected vs. Reported EPS
Quarter Expected Reported Surprise Result
Q3, 2019 $0.55 $0.56 1.8% Beat
Q2, 2019 $0.56 $0.58 3.6% Beat
Q1, 2019 $0.48 $0.48 0.0% Meet
Q4, 2018 $0.58 $0.61 5.2% Beat
Q3, 2018 $0.56 $0.58 3.6% Beat
Q2, 2018 $0.52 $0.57 9.6% Beat
Q1, 2018 $0.47 $0.52 10.6% Beat
Q4, 2017 $0.40 $0.45 12.5% 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 -3.0%.

Stock Price Performance After Earnings
Report Date Price Day Prior Price Next Day Change % Result
2019-10-17 $23.97 $23.24 -3.0% Decline
2019-07-18 $23.40 $24.17 3.3% Increase
2019-04-25 $25.17 $24.86 -1.2% Decline
2019-01-23 $25.94 $25.99 0.2% Increase

Fundamentals And Technical Analysis

First Financial is currently trading at $24.84/share, down -2.2% for the day. The company is trading at approximately 86.9% of its 52-week high of $28.59/share. The company’s stock price is up 6.9% since the last earnings report and down -0.6% over the previous week.

The company’s 14 Day Relative Price Index (RSI) of 59.87 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.

NASDAQGS:FFBC Stock Price Chart Source: Finbox

The current share price implies a price-to-earnings (P/E) multiple of 12.3x and a forward P/E multiple of 12.0x. FFBC’s current share price also implies a price-to-book (P/B) multiple of 1.1x. 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) $24.84
P/E Ratio 12.3x
P/E Ratio (Fwd) 12.0x
PEG Ratio -1.8
Total Debt to Capital (%) 41.4%
Levered Free Cash Flow $177 million
Market Capitalization $2.523 billion

Source: Finbox

Company Profile: First Financial Bancorp.

First Financial Bancorp. is a mid-cap stock with a market capitalization of $2.523 billion. The company operates in the Financial sector and the Banks industry.

First Financial Bancorp. operates as the bank holding company for First Financial Bank that provides commercial banking and related services to individuals and businesses in Ohio, Indiana, Kentucky, and Illinois.

The company accepts various deposit products, such as interest-bearing and noninterest-bearing accounts, time deposits, and cash management services for commercial customers. It also provides real estate loans secured by residential property or commercial property; commercial and industrial loans for various purposes, including inventory, receivables, and equipment; consumer loans comprising new and used vehicle loans, second mortgages on residential real estate, and unsecured loans; and home equity lines of credit. In addition, the company offers commercial financing to the insurance industry, registered investment advisors, certified public accountants, indirect auto finance companies, and restaurant franchisees. The company also offers a range of trust and wealth management services; and long-term, lease, and equipment financing services.

As of December 31, 2018, the company operated 67 banking centers in Ohio; 3 banking centers in Illinois; 73 banking centers in Indiana; and 16 banking centers in Kentucky.

First Financial Bancorp. was founded in 1863 and is headquartered in Cincinnati, Ohio.

Expertise: financial technology, analyzing market trends. Brian is a founder at finbox.io, where he’s focused on building tools that make it faster and easier for investors to research stock fundamentals. Brian’s background is in physics & computer science and previously worked as a software engineer at GE Healthcare. He enjoys applying his expertise in technology to help find market trends that impact investors. Brian can be reached at brian@finbox.io or at +1 (516) 778-6257.

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