Hanmi Financial Q4 Earnings: Can HAFC Hit Its $0.43 EPS Target?

in EARNINGS/INVESTING IDEAS by

Hanmi Financial Corporation (NASDAQGS:HAFC) is scheduled to report Q4 earnings results on January 28, 2020.

Hanmi plans to release earnings at 5:00 PM Eastern Time after markets close for trading.

The company is expected to report earnings of $0.43/share on revenue of $51.35 million. The consensus earnings per share (EPS) of $0.43/share is based on a poll of 4 analysts and represents a decline of -5.4% over the same quarter last year when the company reported earnings of $0.46/share.

The revenue forecast of $51.35 million based on a poll of 4 analysts implies a year-over-year (YoY) decline of -1.1%. Last year the company reported $51.946 million in revenue for the quarter.

Expected to report EPS decline of -$0.03/share for Q4, 2019
Metric Expected Prior Year YoY Change
Revenue $51.35 $51.95 -1.1%
EPS $0.43 $0.46 -5.4%

Earnings Call Trends

Management’s track record for providing useful guidance is absolutely dismal historically and there is no good reason to believe things will be any different this quarter. The company has missed earnings expectations every quarter for the last 7 quarters tracked.

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

Analyst Expected vs. Reported EPS
Quarter Expected Reported Surprise Result
Q3, 2019 $0.47 $0.40 -14.9% Missed
Q2, 2019 $0.10 $0.07 -26.3% Missed
Q1, 2019 $0.48 $0.46 -3.9% Missed
Q4, 2018 $0.50 $0.46 -8.0% Missed
Q3, 2018 $0.52 $0.51 -1.4% Missed
Q2, 2018 $0.53 $0.49 -8.0% Missed
Q1, 2018 $0.52 $0.47 -8.9% Missed

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
2019-10-22 $18.71 $18.34 -2.0% Decline
2019-08-05 $20.48 $20.01 -2.3% Decline
2019-04-23 $21.63 $22.96 6.1% Increase
2019-01-15 $20.70 $20.14 -2.7% Decline

Fundamentals And Technical Analysis

Hanmi Financial is currently trading at $19.52/share, up 0.6% for the day. The company is trading at approximately 81.0% of its 52-week high of $24.09/share. The company’s stock price is up 6.4% since the last earnings report and down -0.3% over the previous week.

The company’s 14 Day Relative Price Index (RSI) of 47.79 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.

NASDAQGS:HAFC Stock Price Chart Source: Finbox

The current share price implies a price-to-earnings (P/E) multiple of 14.6x and a forward P/E multiple of 14.2x.

Hanmi Financial’s current share price also implies a price-to-book (P/B) multiple of 1.0x. 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) $19.52
P/E Ratio 14.6x
P/E Ratio (Fwd) 14.2x
PEG Ratio 0.6
Total Debt to Capital (%) 27.8%
Levered Free Cash Flow $71.419 million
Market Capitalization $601.4 million

Source: Finbox

Company Profile: Hanmi Financial Corporation

Hanmi Financial Corporation is a small-cap stock with a market capitalization of $601.4 million. The company operates in the Financial sector and the Banks industry.

Hanmi Financial Corporation operates as the holding company for Hanmi Bank that provides business banking products and services in the United States. The company offers various deposit products, including noninterest-bearing checking accounts, interest-bearing checking and savings accounts, negotiable order of withdrawal accounts, money market accounts, and certificates of deposit.

The company also provides real estate loans, including commercial property, construction, and residential property loans; and commercial and industrial loans, such as commercial term loans and commercial lines of credit, as well as international finance, and trade services and products comprising letters of credit, and import and export financing.

In addition, the company offers consumer loans that include automobile loans, secured and unsecured personal loans, home improvement loans, home equity lines of credit, unsecured lines of credit, and credit cards; and small business administration loans for business purposes, which comprise owner-occupied commercial real estate, business acquisitions, start-ups, franchise financing, working capital, improvements and renovations, inventory and equipment, and debt refinancing, as well as equipment lease financing.

As of January 24, 2019, it operated a network of 39 full-service branches and 9 loan production offices in California, Texas, Illinois, Virginia, New Jersey, New York, Colorado, Washington, and Georgia. The company was incorporated in 2000 and is headquartered in Los Angeles, California.

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