Q4 Earnings Preview for Univest Financial (UVSP)

in EARNINGS/INVESTING IDEAS by

Univest Financial Corporation (NASDAQGS:UVSP) is scheduled to report Q4 earnings results on January 22, 2020, after market close. Management will host a conference call to discuss its Q4 and year-end earnings on Thursday, January 23, 2020, at 9:00 a.m.

The company is expected to report earnings of $0.53/share on revenue of $58.632 million. The consensus earnings per share (EPS) of $0.53/share is based on a poll of 2 analysts and represents a decline of -15.9% over the same quarter last year when the company reported earnings of $0.63/share.

The revenue forecast of $58.632 million based on a poll of 2 analysts implies a year-over-year (YoY) growth of 5.1%. Last year the company reported $55.793 million in revenue for the quarter.

Expected to report EPS decline of -$0.10/share for Q4, 2019
Metric Expected Prior Year YoY Change
Revenue $58.63 $55.79 5.1%
EPS $0.53 $0.63 -15.9%

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 Univest Financial for earnings this quarter? Let us know in the comments!

Analyst Expected vs. Reported EPS
Quarter Expected Reported Surprise Result
Q3, 2019 $0.52 $0.57 10.7% Beat
Q2, 2019 $0.53 $0.56 5.7% Beat
Q1, 2019 $0.54 $0.55 1.9% Beat
Q4, 2018 $0.51 $0.63 23.5% Beat
Q3, 2018 $0.48 $0.51 6.3% Beat
Q2, 2018 $0.12 $0.15 25.0% Beat
Q1, 2018 $0.45 $0.45 0.8% Beat
Q4, 2017 $0.41 $0.41 -1.2% 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 increasing by 2.2%.

Stock Price Performance After Earnings
Report Date Price Day Prior Price Next Day Change % Result
2019-10-23 $25.20 $25.76 2.2% Increase
2019-07-24 $25.61 $26.65 4.1% Increase
2019-04-24 $24.69 $24.37 -1.3% Decline
2019-01-23 $22.66 $23.90 5.5% Increase

Fundamentals And Technical Analysis

Univest Financial is currently trading at $26.79/share, down -0.3% for the day. The company is trading at approximately 96.4% of its 52-week high of $27.80/share. The company’s stock price is up 4.0% since the last earnings report and up 0.7% over the previous week. The company’s 14 Day Relative Price Index (RSI) of 58.86 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.

NASDAQGS:UVSP Stock Price Chart Source: Finbox

The current share price implies a price-to-earnings (P/E) multiple of 11.5x and a forward P/E multiple of 12.0x.

Univest Financial’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) $26.79
P/E Ratio 11.5x
P/E Ratio (Fwd) 12.0x
PEG Ratio -4.3
Total Debt to Capital (%) 28.4%
Levered Free Cash Flow $76.442 million
Market Capitalization $788 million

Source: Finbox

Company Profile: Univest Financial Corporation

Univest Financial Corporation is a small-cap stock with a market capitalization of $788 million. The company operates in the Financial sector and the Banks industry.

Univest Financial Corporation operates as the holding company for Univest Bank and Trust Co. that provides banking products and services primarily in Pennsylvania. It operates through three segments: Banking, Wealth Management, and Insurance.

The Banking segment provides a range of banking services, such as deposit making, loan origination and servicing, mortgage banking, other general banking services, and equipment lease financing for individuals, businesses, municipalities, and nonprofit organizations.

The Wealth Management segment offers trust and investment advisory services, guardian and custodian services, and other trust and brokerage services, as well as manages private investment accounts for individuals and institutions.

The Insurance segment includes a full-service insurance brokerage agency offering commercial property and casualty insurance, group life and health coverage, employee benefits solutions, personal insurance lines, and human resources consulting services. The company also offers investment consulting and management, fiduciary, financial and retirement planning, investment management services.

It serves customers in Bucks, Berks, Chester, Delaware, Lancaster, Lehigh, Montgomery, Northampton, and Philadelphia counties in Pennsylvania; and Atlantic and Cape May counties in New Jersey through 55 banking offices.

The company was formerly known as Univest Corporation of Pennsylvania and changed its name to Univest Financial Corporation in January 2019. Univest Financial Corporation was founded in 1876 and is headquartered in Souderton, Pennsylvania.

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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