First Hawaiian Q3 Earnings: Is NasdaqGS:FHB Cheap at 0.7x Price/Book?

in EARNINGS/INVESTING IDEAS by

First Hawaiian, Inc. (NasdaqGS:FHB) is scheduled to report Q3 earnings results before markets open for trading on October 23, 2020.

The company is expected to report earnings of $0.27/share on revenue of $134.9 million. The consensus earnings per share (EPS) of $0.27/share is based on a poll of 7 analysts and represents a decline in eps of −52.8% over the same quarter last year, when the company reported earnings of $0.57/share.

The revenue forecast of $134.9 million based on a poll of 4 analysts implies a year-over-year (YoY) decline in revenue of −5.7%. Last year the company reported $143.1 million in revenue for the quarter.

Expected to report EPS contraction of −52.8% for Q3, 2020
Metric Expected Prior Year YoY Change
Revenue $134.88 $143.08 −5.7%
EPS $0.27 $0.57 −52.8%

Earnings Call Trends

Historically, management has exceeded analyst expectations 5 out of the last 8 tracked quarters, missed 2 quarters, and met expectations 1 quarters.

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

Analyst Expected vs. Reported EPS
Quarter Expected Reported Surprise Result
Q2, 2020 $0.23 $0.16 −29.4% Missed
Q1, 2020 $0.43 $0.30 −30.7% Missed
Q4, 2019 $0.51 $0.54 6.7% Beat
Q3, 2019 $0.54 $0.57 6.0% Beat
Q2, 2019 $0.53 $0.54 1.9% Beat
Q1, 2019 $0.53 $0.53 0.4% Beat
Q4, 2018 $0.52 $0.58 10.8% Beat
Q3, 2018 $0.51 $0.52 1.2% 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 −5.1%.

Stock Price Performance After Earnings
Report Date Price Day Prior Price Next Day Change % Result
July 24, 2020 $18.59 $17.64 −5.1% Decline
April 24, 2020 $16.32 $16.70 2.3% Increase
January 28, 2020 $28.53 $29.11 2.0% Increase
October 24, 2019 $28.14 $27.66 −1.7% Decline

Fundamentals And Technical Analysis

First Hawaiian, Inc. is currently trading at $15.33/share, down −1.9% for the day. The company is trading at approximately 49.1% of its 52-week high of $31.25/share. The company’s stock price is down −13.1% since the last earnings report and down −1.0% over the previous week.

The company’s 14 Day Relative Price Index (RSI) of 44.25 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.


NasdaqGS:FHB Stock Price Chart
Source: Finbox

The current share price implies a price-to-earnings (P/E) multiple of 9.91 and a forward P/E multiple of 15.05.

First Hawaiian, Inc.’s current share price also implies a price-to-book (P/B) multiple of 0.74. 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) $15.33
P/E Ratio 9.9x
P/E Ratio (Fwd) 15.1x
PEG Ratio −0.4
Total Debt / Total Capital 16.8%
Levered Free Cash Flow $227.1 million
Price To Sales 3.1x

Finbox

First Hawaiian, Inc. is a small-cap stock with a market capitalization of $1.991 billion. The company operates in the Financials sector and the Banks industry.

First Hawaiian, Inc. operates as a bank holding company for First Hawaiian Bank that provides a range of banking services to consumer and commercial customers in the United States. It operates in three segments: Retail Banking, Commercial Banking, and Treasury and Other. The company accepts various deposit products, including checking and savings accounts, and time deposit accounts. It also provides residential and commercial mortgage loans, home equity lines of credit, automobile loans and leases, personal lines of credit, installment loans, and small business loans and leases, commercial lease financing, and auto dealer financing. In addition, the company offers personal installment, credit card, individual investment and financial planning, insurance protection, trust and estate, private banking, retirement planning, treasury, and merchant processing services. As of December 31, 2019, it operated 58 branches in Oahu, Maui, Hawaii, Kauai, Lanai, Guam, and Saipan. The company was formerly known as BancWest Corporation and changed its name to First Hawaiian, Inc. in April 2016. The company was founded in 1858 and is headquartered in Honolulu, Hawaii. First Hawaiian, Inc. is a subsidiary of BancWest Corporation.

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