TriState Capital Q3 Earnings: Can NasdaqGS:TSC Hit Its $0.23 EPS Target?

in EARNINGS/INVESTING IDEAS by

TriState Capital Holdings, Inc. (NasdaqGS:TSC) is scheduled to report Q3 earnings results after markets close for trading on October 21, 2020.

The company is expected to report earnings of $0.23/share on revenue of $46.81 million. The consensus earnings per share (EPS) of $0.23/share is based on a poll of 7 analysts and represents a decline in eps of −53.1% over the same quarter last year, when the company reported earnings of $0.49/share.

The revenue forecast of $46.81 million based on a poll of 5 analysts implies a year-over-year (YoY) growth in revenue of 1.0%. Last year the company reported $46.353 million in revenue for the quarter.

Expected to report EPS contraction of −53.1% for Q3, 2020
Metric Expected Prior Year YoY Change
Revenue $46.81 $46.35 1.0%
EPS $0.23 $0.49 −53.1%

Earnings Call Trends

Management has been great at managing analyst expectations historically. The company has a perfect record over the last 8 tracked quarters of exceeding earnings guidance.

What are your expectations from TriState Capital Holdings, Inc. for earnings this quarter? Let us know in the comments!

Analyst Expected vs. Reported EPS
Quarter Expected Reported Surprise Result
Q2, 2020 $0.20 $0.30 46.5% Beat
Q1, 2020 $0.26 $0.38 46.2% Beat
Q4, 2019 $0.44 $0.47 6.8% Beat
Q3, 2019 $0.43 $0.49 13.5% Beat
Q2, 2019 $0.45 $0.47 4.9% Beat
Q1, 2019 $0.43 $0.48 11.6% Beat
Q4, 2018 $0.46 $0.49 7.0% Beat
Q3, 2018 $0.46 $0.47 3.1% 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 falling −7.0%.

Stock Price Performance After Earnings
Report Date Price Day Prior Price Next Day Change % Result
July 22, 2020 $14.83 $13.79 −7.0% Decline
April 20, 2020 $10.54 $12.91 22.5% Increase
January 29, 2020 $24.45 $24.08 −1.5% Decline
October 16, 2019 $21.63 $22.49 4.0% Increase

Fundamentals And Technical Analysis

TriState Capital Holdings, Inc. is currently trading at $13.83/share, up 2.1% for the day. The company is trading at approximately 51.6% of its 52-week high of $26.43/share. The company’s stock price is up 0.3% since the last earnings report and down −3.6% over the previous week.

The company’s 14 Day Relative Price Index (RSI) of 43.24 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.


NasdaqGS:TSC Stock Price Chart
Source: Finbox

The current share price implies a price-to-earnings (P/E) multiple of 8.86 and a forward P/E multiple of 12.23.

TriState Capital Holdings, Inc.’s current share price also implies a price-to-book (P/B) multiple of 0.80. 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) $13.83
P/E Ratio 8.9x
P/E Ratio (Fwd) 12.2x
PEG Ratio −0.6
Total Debt / Total Capital 53.6%
Levered Free Cash Flow $73.199 million
Price To Sales 2.3x

Finbox

TriState Capital Holdings, Inc. is a small-cap stock with a market capitalization of $404.2 million. The company operates in the Financials sector and the Banks industry.

TriState Capital Holdings, Inc. operates as the bank holding company for TriState Capital Bank that provides various commercial and private banking services to middle-market businesses and high-net-worth individuals in the United States. It operates in two segments, Bank and Investment Management. The company’s deposit products include checking accounts, money market deposit accounts, and certificates of deposit, as well as promontory’s certificate of deposit account registry services and insured cash sweep services. It also provides loans that are secured by cash, marketable securities, cash value life insurance, residential property, or other financial assets, as well as commercial and industrial loans, commercial real estate loans, personal loans, asset-based loans, acquisition financing, and letters of credit. In addition, the company offers liquidity and treasury management services, such as online balance reporting, online bill payment, remote deposit, liquidity, wire and ACH, foreign exchange, and controlled disbursement services; and equity and fixed income advisory and sub-advisory services to third party mutual funds and series trust mutual funds, as well as separately managed accounts primarily comprising ultra-high-net-worth and institutional clients that include corporations, ERISA plans, Taft-Hartley funds, municipalities, endowments, and foundations. Further, it provides cash management services; and capital market services, which comprise interest rate swaps and investment management products, as well as engages in wholesaling and marketing the investment products and services. The company offers its products and services through its main office located in Pittsburgh, Pennsylvania, as well as through its four additional representative offices in Cleveland, Ohio; Philadelphia, Pennsylvania; Edison, New Jersey; and New York, New York. TriState Capital Holdings, Inc. was incorporated in 2006 and is headquartered in Pittsburgh, Pennsylvania.

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