Atlantic Capital (NasdaqGS:ACBI) Q3 2020 Earnings Prep

in EARNINGS/INVESTING IDEAS by

Atlantic Capital Bancshares, Inc. (NasdaqGS:ACBI) is scheduled to report Q3 earnings results after markets close for trading on October 22, 2020.

The company is expected to report earnings of $0.26/share on revenue of $25.1 million. The consensus earnings per share (EPS) of $0.26/share is based on a poll of 4 analysts and represents a decline in eps of −20.5% over the same quarter last year, when the company reported earnings of $0.33/share.

The revenue forecast of $25.1 million based on a poll of 3 analysts implies a year-over-year (YoY) growth in revenue of 10.3%. Last year the company reported $22.753 million in revenue for the quarter.

Expected to report EPS contraction of −20.5% for Q3, 2020
Metric Expected Prior Year YoY Change
Revenue $25.10 $22.75 10.3%
EPS $0.26 $0.33 −20.5%

Earnings Call Trends

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

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

Analyst Expected vs. Reported EPS
Quarter Expected Reported Surprise Result
Q2, 2020 $0.19 $0.09 −53.1% Missed
Q1, 2020 $0.25 $0.10 −59.7% Missed
Q4, 2019 $0.30 $0.32 5.8% Beat
Q3, 2019 $0.28 $0.33 16.8% Beat
Q2, 2019 $0.26 $0.29 9.8% Beat
Q1, 2019 $0.30 $0.26 −12.2% Missed
Q4, 2018 $0.28 $0.29 5.1% Beat
Q3, 2018 $0.27 $0.25 −6.0% 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 June 30, 2020, the stock price reacted by falling −2.4%.

Stock Price Performance After Earnings
Report Date Price Day Prior Price Next Day Change % Result
July 23, 2020 $11.05 $10.79 −2.4% Decline
April 23, 2020 $11.01 $11 −0.1% Decline
January 30, 2020 $17.57 $18.87 7.4% Increase
October 24, 2019 $17.85 $18.13 1.6% Increase

Fundamentals And Technical Analysis

Atlantic Capital Bancshares, Inc. is currently trading at $13.18/share, up 0.3% for the day. The company is trading at approximately 65.2% of its 52-week high of $20.21/share. The company’s stock price is up 22.2% since the last earnings report and down −0.3% over the previous week.

The company’s 14 Day Relative Price Index (RSI) of 60.87 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.


NasdaqGS:ACBI Stock Price Chart
Source: Finbox

The current share price implies a price-to-earnings (P/E) multiple of 15.24 and a forward P/E multiple of 16.59.

Atlantic Capital Bancshares, Inc.’s current share price also implies a price-to-book (P/B) multiple of 0.85. The following table summarizes some other key fundamental ratios:

Data as of October 20, 2020
Metric Value
Last Reported Fiscal Period Key FY2020.Q2
Period End Date June 30, 2020
Stock Price (Current) $13.18
P/E Ratio 15.2x
P/E Ratio (Fwd) 16.6x
PEG Ratio −0.3
Total Debt / Total Capital 32.2%
Levered Free Cash Flow $73.793 million
Price To Sales 3.8x

Finbox

Atlantic Capital Bancshares, Inc. is a micro-cap stock with a market capitalization of $284.8 million. The company operates in the Financials sector and the Banks industry.

Atlantic Capital Bancshares, Inc. operates as the bank holding company for Atlantic Capital Bank, N.A. that provides banking products and services. The company offers non-interest and interest bearing demand, savings and money market, time, and brokered deposits. It also provides working capital and equipment loans, loans supported by owner-occupied real estate, revolving lines of credit, term loans, and letters of credit; secured installment and term loans, and home equity lines of credit; and commercial real estate loans, including secured construction loans, secured mini-permanent loans, and secured or unsecured lines of credit, as well as small business administration and franchise finance loans. In addition, the company offers cash and treasury management, capital market, payment processing, commercial and not-for-profit banking, payroll, electronic payment, and online and mobile banking services. It serves small and medium sized businesses and commercial enterprises, franchisees, not for profit enterprises, commercial real estate developers and individual clients, public real estate investment trusts and other commercial real estate clients, and professional services businesses. The company primarily operates a loan production office in Cobb County, Georgia; and 5 additional locations located in Cobb County, Fulton County, and Athens-Clarke County, Georgia; and Hamilton County, Tennessee. The company was founded in 2006 and is headquartered in Atlanta, Georgia.

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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