Q3 Earnings Preview for Umpqua (NasdaqGS:UMPQ)

in EARNINGS/INVESTING IDEAS by

Umpqua Holdings Corporation (NasdaqGS:UMPQ) is scheduled to report Q3 earnings results after markets close for trading on October 21, 2020.

The company is expected to report earnings of $0.34/share on revenue of $321.5 million. The consensus earnings per share (EPS) of $0.34/share is based on a poll of 8 analysts and represents a decline in eps of −12.7% over the same quarter last year, when the company reported earnings of $0.39/share.

The revenue forecast of $321.5 million based on a poll of 8 analysts implies a year-over-year (YoY) growth in revenue of 1.3%. Last year the company reported $317.5 million in revenue for the quarter.

Expected to report EPS contraction of −12.7% for Q3, 2020
Metric Expected Prior Year YoY Change
Revenue $321.46 $317.49 1.3%
EPS $0.34 $0.39 −12.7%

Earnings Call Trends

Historically, management has exceeded analyst expectations 7 out of the last 8 tracked quarters, and missed expectations 1 quarters.

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

Analyst Expected vs. Reported EPS
Quarter Expected Reported Surprise Result
Q2, 2020 $0.15 $0.27 74.2% Beat
Q1, 2020 $0.28 $0.01 −96.1% Missed
Q4, 2019 $0.37 $0.40 10.6% Beat
Q3, 2019 $0.37 $0.39 4.5% Beat
Q2, 2019 $0.38 $0.61 58.9% Beat
Q1, 2019 $0.38 $0.40 7.3% Beat
Q4, 2018 $0.39 $0.41 5.0% Beat
Q3, 2018 $0.37 $0.40 10.5% 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 3.5%.

Stock Price Performance After Earnings
Report Date Price Day Prior Price Next Day Change % Result
July 22, 2020 $11.15 $11.54 3.5% Increase
April 22, 2020 $10.53 $10.44 −0.8% Decline
January 22, 2020 $18.26 $18.05 −1.2% Decline
October 16, 2019 $15.98 $15.77 −1.3% Decline

Fundamentals And Technical Analysis

Umpqua Holdings Corporation is currently trading at $12.55/share, up 1.5% for the day. The company is trading at approximately 66.1% of its 52-week high of $18.94/share. The company’s stock price is up 8.8% since the last earnings report and down −2.0% over the previous week.

The company’s 14 Day Relative Price Index (RSI) of 55.67 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.


NasdaqGS:UMPQ Stock Price Chart
Source: Finbox

The current share price implies a price-to-earnings (P/E) multiple of −1.67 and a forward P/E multiple of 12.50.

Umpqua Holdings Corporation’s current share price also implies a price-to-book (P/B) multiple of 1.07. 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) $12.55
P/E Ratio −1.7x
P/E Ratio (Fwd) 12.5x
PEG Ratio 0.0
Total Debt / Total Capital 41.7%
Levered Free Cash Flow -$123.3 million
Price To Sales 2.8x

Finbox

Umpqua Holdings Corporation is a mid-cap stock with a market capitalization of $2.722 billion. The company operates in the Financials sector and the Banks industry.

Umpqua Holdings Corporation operates as the holding company of Umpqua Bank that provides commercial and retail banking, and retail brokerage services. It operates through four segments: Wholesale Bank, Wealth Management, Retail Bank, and Home Lending. The company offers deposit products, including non-interest bearing checking, interest bearing checking and savings, and money market accounts, as well as certificates of deposit. It also provides loans for corporate and commercial customers, such as accounts receivable and inventory financing, multi-family and equipment loans, commercial equipment leases, international trade, real estate construction loans, permanent financing products, and small business administration program financing, as well as capital markets and treasury management services. In addition, the company offers loan products for small businesses; commercial and industrial loans; residential real estate loans for the construction, purchase, and refinancing of residential owner-occupied and rental properties; and consumer loans comprising secured and unsecured personal loans, home equity and personal lines of credit, and motor vehicle loans. Further, it provides financial planning, trust, and investment services; treasury and cash management services; retail brokerage and investment advisory services; digital, mobile, telephone, text, and online banking services; and e-commerce services. The company serves middle market corporate, commercial, and business banking customers; individual investors; and high net worth individuals. As of December 31, 2019, it conducted commercial and retail banking activities at 274 locations in Oregon, Washington, California, Idaho, and Nevada. The company was founded in 1953 and is headquartered in Portland, Oregon.

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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