First Horizon National (NYSE:FHN) Q3 2020 Earnings Prep

in EARNINGS/INVESTING IDEAS by

First Horizon National Corporation (NYSE:FHN) is scheduled to report Q3 earnings results before markets open for trading on October 23, 2020.

The company is expected to report earnings of $0.23/share on revenue of $853.2 million. The consensus earnings per share (EPS) of $0.23/share is based on a poll of 11 analysts and represents a decline in eps of −46.7% over the same quarter last year, when the company reported earnings of $0.43/share.

The revenue forecast of $853.2 million based on a poll of 10 analysts implies a year-over-year (YoY) growth in revenue of 80.6%. Last year the company reported $472.4 million in revenue for the quarter.

Expected to report EPS contraction of −46.7% for Q3, 2020
Metric Expected Prior Year YoY Change
Revenue $853.23 $472.41 80.6%
EPS $0.23 $0.43 −46.7%

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 Horizon National Corporation for earnings this quarter? Let us know in the comments!

Analyst Expected vs. Reported EPS
Quarter Expected Reported Surprise Result
Q2, 2020 $0.21 $0.20 −2.8% Missed
Q1, 2020 $0.34 $0.05 −85.2% Missed
Q4, 2019 $0.42 $0.47 12.1% Beat
Q3, 2019 $0.42 $0.43 1.8% Beat
Q2, 2019 $0.36 $0.42 15.3% Beat
Q1, 2019 $0.35 $0.35 1.0% Beat
Q4, 2018 $0.36 $0.35 −2.7% Missed
Q3, 2018 $0.36 $0.36 −0.2% 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 did not react much to the update.

Stock Price Performance After Earnings
Report Date Price Day Prior Price Next Day Change % Result
July 17, 2020 $9.30 $9.23 −0.8% Decline
April 21, 2020 $7.96 $7.87 −1.1% Decline
January 17, 2020 $16.56 $17.27 4.3% Increase
October 16, 2019 $16.15 $15.41 −4.6% Decline

Fundamentals And Technical Analysis

First Horizon National Corporation is currently trading at $10.49/share, down −0.2% for the day. The company is trading at approximately 60.2% of its 52-week high of $17.42/share. The company’s stock price is up 13.7% since the last earnings report and down −0.9% over the previous week.

The company’s 14 Day Relative Price Index (RSI) of 57.29 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.


NYSE:FHN Stock Price Chart
Source: Finbox

The current share price implies a price-to-earnings (P/E) multiple of 20.01 and a forward P/E multiple of 15.51.

First Horizon National Corporation’s current share price also implies a price-to-book (P/B) multiple of 1.24. 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) $10.49
P/E Ratio 20.0x
P/E Ratio (Fwd) 15.5x
PEG Ratio −0.4
Total Debt / Total Capital 41.6%
Levered Free Cash Flow -$77.47 million
Price To Sales 3.5x

Finbox

First Horizon National Corporation is a mid-cap stock with a market capitalization of $5.815 billion. The company operates in the Financials sector and the Banks industry.

First Horizon National Corporation operates as the bank holding company for First Horizon Bank that provides various financial services. It operates through four segments: Regional Banking, Fixed Income, Corporate, and Non-Strategic. The company offers general banking services for consumers, businesses, financial institutions, and governments. It is also involved in the underwriting of bank-eligible securities and other fixed-income securities eligible for underwriting by financial subsidiaries; loan sales; derivative sales; and provision of advisory services. In addition, the company offers brokerage services; correspondent banking services; transaction processing services comprising nationwide check clearing and remittance processing; trust, fiduciary, and agency services; credit card products; equipment finance; investment and financial advisory services; and wealth management services. Further, it engages in mutual fund and retail insurance sales, as well as provides mortgage banking services. As of January 17, 2020, the company operated approximately 270 branches under the First Horizon Bank brand in the Southeast United States; and 29 offices in 18 states across the United States under the FHN Financial brand. The company was founded in 1864 and is headquartered in Memphis, Tennessee.

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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