Q4 Earnings Preview for Banner (BANR)

in EARNINGS/INVESTING IDEAS by

Banner Corporation (NASDAQGS:BANR) is scheduled to report Q4 earnings results on January 23, 2020, after markets close for trading. Webcast details can be found here.

The company is expected to report earnings of $1.02/share on revenue of $137.5 million. The consensus earnings per share (EPS) of $1.02/share is based on a poll of 5 analysts and represents a decline of -6.4% over the same quarter last year when the company reported earnings of $1.09/share.

The revenue forecast of $137.5 million based on a poll of 5 analysts implies a year-over-year (YoY) decline of -0.7%. Last year the company reported $138.5 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 $137.53 $138.48 -0.7%
EPS $1.02 $1.09 -6.4%

Earnings Call Trends

Historically, management has exceeded analyst expectations 6 out of the last 8 tracked quarters, and missed expectations 2 quarters.

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

Analyst Expected vs. Reported EPS
Quarter Expected Reported Surprise Result
Q3, 2019 $1.05 $1.16 10.5% Beat
Q2, 2019 $1.05 $1.15 9.5% Beat
Q1, 2019 $1.05 $0.99 -5.7% Missed
Q4, 2018 $1.06 $1.09 2.8% Beat
Q3, 2018 $0.96 $1.19 23.3% Beat
Q2, 2018 $0.86 $1 15.6% Beat
Q1, 2018 $0.75 $0.81 8.0% Beat
Q4, 2017 $0.74 $0.71 -4.1% 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 did not react much to the update.

Stock Price Performance After Earnings
Report Date Price Day Prior Price Next Day Change % Result
2019-10-23 $55.61 $55.07 -1.0% Decline
2019-07-24 $54.19 $57.77 6.6% Increase
2019-04-24 $55.43 $51.78 -6.6% Decline
2019-01-23 $55.95 $55.77 -0.3% Decline

Fundamentals And Technical Analysis

Banner is currently trading at $54.01/share, down -1.6% for the day. The company is trading at approximately 84.1% of its 52-week high of $64.20/share. The company’s stock price is down -1.9% since the last earnings report and down -0.8% over the previous week. The company’s 14 Day Relative Price Index (RSI) of 47.32 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.

NASDAQGS:BANR Stock Price Chart Source: Finbox

The current share price implies a price-to-earnings (P/E) multiple of 12.5x and a forward P/E multiple of 12.5x. Banner’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 21, 2020
Metric Value
Last Fiscal Period FY2019.Q3
Period End Date September 30, 2019
Stock Price (Current) $54.01
P/E Ratio 12.5x
P/E Ratio (Fwd) 12.5x
PEG Ratio -7.2
Total Debt to Capital (%) 27.0%
Levered Free Cash Flow -$14.043 million
Market Capitalization $1.875 billion

Source: Finbox

Company Profile: Banner Corporation

Banner Corporation is a small-cap stock with a market capitalization of $1.875 billion. The company operates in the Financial sector and the Banks industry.

Banner Corporation operates as the bank holding company for Banner Bank and Islanders Bank that provides commercial banking and financial products and services to individuals, businesses, and public sector entities primarily in the United States.

It offers deposit products, including interest-bearing and non-interest-bearing checking accounts, money market deposit accounts, regular savings accounts, and certificates of deposit, as well as treasury management services and retirement savings plans. The company also provides commercial real estate loans, including owner-occupied, investment properties, and multifamily residential real estate loans; construction, land, and land development loans; residential mortgage loans; commercial business loans; agricultural loans; and consumer loans, such as home equity lines of credit, automobile, and boat and recreational vehicle loans, as well as loans secured by deposit accounts. In addition, it engages in mortgage banking operations through the origination and sale of one- to four-family and multi-family residential loans.

Further, the company provides electronic and digital banking services. As of December 31, 2018, it operated 182 branch offices, including 179 Banner Bank branches and 3 Islanders Bank branches located in Washington, Oregon, California, and Idaho. It also operates 17 Banner Bank loan production offices located in Washington, Oregon, California, Idaho, and Utah.

Banner Corporation was founded in 1890 and is based in Walla Walla, Washington.

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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