Cadence (NYSE:CADE) Q3 Earnings: What Can You Expect?

in EARNINGS/INVESTING IDEAS by

Cadence Bancorporation (NYSE:CADE) is scheduled to report Q3 earnings results on October 21, 2020.

The company is expected to report earnings of $0.20/share on revenue of $186 million. The consensus earnings per share (EPS) of $0.20/share is based on a poll of 8 analysts and represents a decline in eps of −42.1% over the same quarter last year, when the company reported earnings of $0.34/share.

The revenue forecast of $186 million based on a poll of 6 analysts implies a year-over-year (YoY) decline in revenue of −4.5%. Last year the company reported $194.8 million in revenue for the quarter.

Expected to report EPS contraction of −42.1% for Q3, 2020
Metric Expected Prior Year YoY Change
Revenue $186.04 $194.83 −4.5%
EPS $0.20 $0.34 −42.1%

Earnings Call Trends

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

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

Analyst Expected vs. Reported EPS
Quarter Expected Reported Surprise Result
Q2, 2020 $0.16 -$0.45 −384.5% Missed
Q1, 2020 $0.25 $0.10 −59.3% Missed
Q4, 2019 $0.45 $0.40 −11.1% Missed
Q3, 2019 $0.50 $0.34 −31.5% Missed
Q2, 2019 $0.58 $0.40 −31.3% Missed
Q1, 2019 $0.49 $0.57 15.7% Beat
Q4, 2018 $0.54 $0.50 −6.8% Missed
Q3, 2018 $0.51 $0.56 9.8% 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 June 30, 2020, 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
July 22, 2020 $8.34 $8.37 0.4% Increase
April 29, 2020 $6.52 $6.62 1.5% Increase
January 23, 2020 $17.65 $16.70 −5.4% Decline
October 23, 2019 $17.97 $15.32 −14.7% Decline

Fundamentals And Technical Analysis

Cadence Bancorporation is currently trading at $10.70/share, up 2.6% for the day. The company is trading at approximately 58.8% of its 52-week high of $18.24/share. The company’s stock price is up 27.8% since the last earnings report and up 0.9% over the previous week.

The company’s 14 Day Relative Price Index (RSI) of 57.30 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.


NYSE:CADE Stock Price Chart
Source: Finbox

The current share price implies a price-to-earnings (P/E) multiple of −3.75 and a forward P/E multiple of 51.17.

Cadence Bancorporation’s current share price also implies a price-to-book (P/B) multiple of 0.66. The following table summarizes some other key fundamental ratios:

Data as of October 19, 2020
Metric Value
Last Reported Fiscal Period Key FY2020.Q2
Period End Date June 30, 2020
Stock Price (Current) $10.70
P/E Ratio −3.7x
P/E Ratio (Fwd) 51.2x
PEG Ratio 0.0
Total Debt / Total Capital 22.9%
Levered Free Cash Flow $625.1 million
Price To Sales 3.0x

Finbox

Cadence Bancorporation is a small-cap stock with a market capitalization of $1.314 billion. The company operates in the Financials sector and the Banks industry.

Cadence Bancorporation, a financial holding company, through its subsidiary, Cadence Bank, National Association, provides commercial banking products and services to middle-market commercial businesses, high net worth individuals, business owners, and retail customers in the United States. The company operates through Banking and Financial Services segments. It offers checking, savings, money market, and time and other deposit accounts. The company also provides commercial and industrial, and commercial and residential real estate loans; other consumer loans, such as personal, family and household purposes, auto, boat, and personal installment loans; and shared national credits. In addition, it offers wealth management and other fiduciary, and private banking services under the Linscomb & Williams and Cadence Trust brands. Further, the company provides life, disability, and long-term care insurance products, as well as buy-sell agreements to retail and commercial customers under the Cadence Investment Services brand through financial consultants and advisors, and third party partners, as well as directly. Additionally, it offers correspondent banking products comprising treasury and liquidity management, Fed funds accommodation, wholesale mortgage, and commercial real estate participation services for financial institutions; and payroll and human resources services, payroll cards, and employee health insurance products. The company also provides debit and credit cards; merchant services; employee and payroll benefit solutions; and automated clearing house, lock-box, remote deposit capture, foreign exchange, and other treasury services, as well as online, mobile, and telephone banking services. As of December 31, 2019, it operated 98 branch offices in Texas, Alabama, Florida, Mississippi, and Tennessee; and 32 branches throughout Georgia. The company also serves through ATMs and ITMs. Cadence Bancorporation was founded in 1885 and is headquartered in Houston, Texas.

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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