Q3 Earnings Preview for Fulton Financial (NasdaqGS:FULT)

in EARNINGS/INVESTING IDEAS by

Fulton Financial Corporation (NasdaqGS:FULT) is scheduled to report Q3 earnings results on October 20, 2020.

The company is expected to report earnings of $0.20/share on revenue of $215 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 −45.6% over the same quarter last year, when the company reported earnings of $0.37/share.

The revenue forecast of $215 million based on a poll of 8 analysts implies a year-over-year (YoY) decline in revenue of −2.8%. Last year the company reported $221.1 million in revenue for the quarter.

Expected to report EPS contraction of −45.6% for Q3, 2020
Metric Expected Prior Year YoY Change
Revenue $214.95 $221.07 −2.8%
EPS $0.20 $0.37 −45.6%

Earnings Call Trends

Historically, management has exceeded analyst expectations 4 out of the last 8 tracked quarters, missed 3 quarters, and met expectations 1 quarters.

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

Analyst Expected vs. Reported EPS
Quarter Expected Reported Surprise Result
Q2, 2020 $0.10 $0.24 133.3% Beat
Q1, 2020 $0.23 $0.16 −29.4% Missed
Q4, 2019 $0.35 $0.33 −6.1% Missed
Q3, 2019 $0.35 $0.37 5.7% Beat
Q2, 2019 $0.34 $0.35 3.2% Beat
Q1, 2019 $0.33 $0.33 1.2% Beat
Q4, 2018 $0.35 $0.33 −4.8% Missed
Q3, 2018 $0.33 $0.37 13.1% 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 reacted by increasing 3.7%.

Stock Price Performance After Earnings
Report Date Price Day Prior Price Next Day Change % Result
July 21, 2020 $9.74 $10.10 3.7% Increase
April 21, 2020 $10.71 $10.17 −5.0% Decline
January 21, 2020 $17.32 $17.23 −0.5% Decline
October 22, 2019 $16.68 $16.83 0.9% Increase

Fundamentals And Technical Analysis

Fulton Financial Corporation is currently trading at $10.36/share, up 0.5% for the day. The company is trading at approximately 57.7% of its 52-week high of $18/share. The company’s stock price is up 2.5% since the last earnings report and down −1.9% over the previous week.

The company’s 14 Day Relative Price Index (RSI) of 53.44 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.


NasdaqGS:FULT Stock Price Chart
Source: Finbox

The current share price implies a price-to-earnings (P/E) multiple of 9.56 and a forward P/E multiple of 12.28.

Fulton Financial Corporation’s current share price also implies a price-to-book (P/B) multiple of 0.72. 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) $10.36
P/E Ratio 9.6x
P/E Ratio (Fwd) 12.3x
PEG Ratio −0.4
Total Debt / Total Capital 55.3%
Levered Free Cash Flow -$11.378 million
Free Cash Flow Yield 0.7%

Finbox

Fulton Financial Corporation is a small-cap stock with a market capitalization of $1.669 billion. The company operates in the Financials sector and the Banks industry.

Fulton Financial Corporation operates as a multi-bank financial holding company that provides banking and financial services to businesses and consumers. It accepts various checking accounts and savings deposit products, certificates of deposit, and individual retirement accounts. The company also offers consumer loans, including home equity loans and lines of credit, automobile loans, equipment leases, personal lines of credit, and checking account overdraft protection; construction and jumbo residential mortgage loans; and commercial lending products comprising commercial, financial, agricultural, and real estate loans. In addition, it provides finance leasing, letters of credit, cash management services, and traditional deposit products; and investment management, trust, brokerage, insurance, and investment advisory services. Further, the company owns passive investments, as well as trust preferred securities; and sells various life insurance products. It provides its products and services through branch banking, as well as through a network of automated teller machines, telephone banking, mobile banking, and online banking. As of December 31, 2019, the company operated 230 branches in Pennsylvania, Maryland, Delaware, New Jersey, and Virginia. Fulton Financial Corporation was founded in 1882 and is headquartered in Lancaster, Pennsylvania.

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