Banc of California Q3 Earnings: Can NYSE:BANC Hit Its $0.16 EPS Target?

in EARNINGS/INVESTING IDEAS by

Banc of California, Inc. (NYSE:BANC) is scheduled to report Q3 earnings results on October 22, 2020.

The company is expected to report earnings of $0.16/share on revenue of $61.98 million. The consensus earnings per share (EPS) of $0.16/share is based on a poll of 6 analysts and represents a growth in eps of 5.6% over the same quarter last year, when the company reported earnings of $0.15/share.

The revenue forecast of $61.98 million based on a poll of 5 analysts implies a year-over-year (YoY) decline in revenue of −0.2%. Last year the company reported $62.096 million in revenue for the quarter.

Expected to report EPS growth of 5.6% for Q3, 2020
Metric Expected Prior Year YoY Change
Revenue $61.98 $62.10 −0.2%
EPS $0.16 $0.15 5.6%

Earnings Call Trends

Historically, management has exceeded analyst expectations 5 out of the last 8 tracked quarters, and missed expectations 3 quarters.

What are your expectations from Banc of California, Inc. for earnings this quarter? Let us know in the comments!

Analyst Expected vs. Reported EPS
Quarter Expected Reported Surprise Result
Q2, 2020 -$0.04 $0.03 165.3% Beat
Q1, 2020 $0.04 -$0.14 −464.7% Missed
Q4, 2019 $0.17 $0.18 6.8% Beat
Q3, 2019 -$0.19 $0.15 178.4% Beat
Q2, 2019 $0.17 $0.32 85.4% Beat
Q1, 2019 $0.25 $0.32 25.8% Beat
Q4, 2018 $0.23 $0.19 −17.1% Missed
Q3, 2018 $0.20 $0.12 −41.3% 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 increasing 7.7%.

Stock Price Performance After Earnings
Report Date Price Day Prior Price Next Day Change % Result
July 23, 2020 $10.20 $10.99 7.7% Increase
April 29, 2020 $10.78 $10.42 −3.3% Decline
January 23, 2020 $17.36 $16.69 −3.9% Decline
October 23, 2019 $15.01 $13.87 −7.6% Decline

Fundamentals And Technical Analysis

Banc of California, Inc. is currently trading at $11.10/share, up 0.5% for the day. The company is trading at approximately 58.1% of its 52-week high of $19.12/share. The company’s stock price is up 1.0% since the last earnings report and down −0.6% over the previous week.

The company’s 14 Day Relative Price Index (RSI) of 47.98 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.


NYSE:BANC Stock Price Chart
Source: Finbox

The current share price implies a price-to-earnings (P/E) multiple of −12.80 and a forward P/E multiple of 184.52.

Banc of California, Inc.’s current share price also implies a price-to-book (P/B) multiple of 0.84. 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) $11.10
P/E Ratio −12.8x
P/E Ratio (Fwd) 184.5x
PEG Ratio 0.0
Total Debt / Total Capital 52.7%
Levered Free Cash Flow $43.516 million
Price To Sales 3.2x

Finbox

Banc of California, Inc. is a small-cap stock with a market capitalization of $557.6 million. The company operates in the Financials sector and the Banks industry.

Banc of California, Inc. operates as the bank holding company for Banc of California, National Association that provides banking products and services in the United States. It offers range of deposit products, including checking, savings, interest-bearing and noninterest-bearing demand, savings, retirement, and money market deposit accounts, as well as certificates of deposit and safe deposit boxes. The company also provides various loan products, such as commercial and industrial; commercial real estate and multifamily; small business administration; construction; and other consumer loans, as well as warehouse and indirect/direct leveraged lending. In addition, it offers automated bill payment, cash and treasury management, foreign exchange, card payment, remote and mobile deposit capture, automated clearing house origination, wire transfer, direct deposit, and Internet banking services; and master demand accounts and interest rate swaps. Further, the company invests in collateralized loan obligations, agency securities, municipal bonds, agency residential mortgage-backed securities, and corporate debt securities. As of October 02, 2020, it operated 31 full-service branches in Southern California. The company was formerly known as First PacTrust Bancorp, Inc. and changed its name to Banc of California, Inc. in July 2013. Banc of California, Inc. was founded in 1941 and is headquartered in Santa Ana, California.

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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