Huntington (NasdaqGS:HBAN) Q3 Earnings: What Can You Expect?

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Huntington Bancshares Incorporated (NasdaqGS:HBAN) is scheduled to report Q3 earnings results before markets open for trading on October 22, 2020.

The company is expected to report earnings of $0.25/share on revenue of $1.225 billion. The consensus earnings per share (EPS) of $0.25/share is based on a poll of 16 analysts and represents a decline in eps of −26.6% over the same quarter last year, when the company reported earnings of $0.34/share.

The revenue forecast of $1.225 billion based on a poll of 11 analysts implies a year-over-year (YoY) growth in revenue of 3.1%. Last year the company reported $1.188 billion in revenue for the quarter.

Expected to report EPS contraction of −26.6% for Q3, 2020
Metric Expected Prior Year YoY Change
Revenue $1,224.55 $1,188.00 3.1%
EPS $0.25 $0.34 −26.6%

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 Huntington Bancshares Incorporated for earnings this quarter? Let us know in the comments!

Analyst Expected vs. Reported EPS
Quarter Expected Reported Surprise Result
Q2, 2020 $0.07 $0.13 82.8% Beat
Q1, 2020 $0.25 $0.03 −88.0% Missed
Q4, 2019 $0.31 $0.31 0.4% Beat
Q3, 2019 $0.33 $0.34 2.2% Beat
Q2, 2019 $0.32 $0.33 3.7% Beat
Q1, 2019 $0.32 $0.32 1.1% Beat
Q4, 2018 $0.32 $0.29 −10.1% Missed
Q3, 2018 $0.32 $0.33 4.2% 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 increasing 4.0%.

Stock Price Performance After Earnings
Report Date Price Day Prior Price Next Day Change % Result
July 23, 2020 $9.23 $9.60 4.0% Increase
April 23, 2020 $8.04 $8.16 1.5% Increase
January 23, 2020 $14.73 $13.72 −6.9% Decline
October 24, 2019 $14.47 $14.48 0.1% Increase

Fundamentals And Technical Analysis

Huntington Bancshares Incorporated is currently trading at $9.52/share, down −1.6% for the day. The company is trading at approximately 60.9% of its 52-week high of $15.63/share. The company’s stock price is down −0.8% since the last earnings report and down −0.4% over the previous week. The company’s 14 Day Relative Price Index (RSI) of 48.93 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.


NasdaqGS:HBAN Stock Price Chart
Source: Finbox

The current share price implies a price-to-earnings (P/E) multiple of 11.91 and a forward P/E multiple of 15.23.

Huntington Bancshares Incorporated’s current share price also implies a price-to-book (P/B) multiple of 0.91. 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) $9.52
P/E Ratio 11.9x
P/E Ratio (Fwd) 15.2x
PEG Ratio −0.3
Total Debt / Total Capital 46.7%
Levered Free Cash Flow $1.327 billion
Price To Sales 2.6x

Finbox

Huntington Bancshares Incorporated is a mid-cap stock with a market capitalization of $9.685 billion. The company operates in the Financials sector and the Banks industry.

Huntington Bancshares Incorporated operates as a holding company for The Huntington National Bank that provides commercial, small business, consumer, and mortgage banking services. The company operates through four business segments: Consumer and Business Banking, Commercial Banking, Vehicle Finance, and Regional Banking and The Huntington Private Client Group (RBHPCG). The Consumer and Business Banking segment offers financial products and services, such as checking accounts, savings accounts, money market accounts, certificates of deposit, consumer loans, mortgage loans, credit cards, and small business loans, as well as investment products. It also provides insurance, interest rate risk protection, foreign exchange, and treasury management services, as well as online, mobile, and telephone banking services. The Commercial Banking segment offers banking solutions and asset finance services; corporate risk management services; institutional sales, trading, and underwriting services; institutional corporate banking services; treasury management services; and other financing solutions, as well as lends real estate developers, REITs, and other customers. The Vehicle Finance segment provides financing to consumers for the purchase of automobiles, light-duty trucks, recreational vehicles, and marine craft at franchised and other select dealerships, as well as to franchised dealerships for the acquisition of new and used inventory. The RBHPCG segment provides deposits, lending, banking, wealth management, investment and portfolio management, fiduciary administration, trust, retirement plan, and institutional and mutual fund custody services. As of January 23, 2020, the company operated through 868 full-service branches, including 12 private client group offices, and 1,448 automated teller machines located in 7 Midwestern states. Huntington Bancshares Incorporated was founded in 1866 and is headquartered in Columbus, Ohio.

Expertise: financial technology, analyzing market trends. Brian is a founder at finbox.io, where he’s focused on building tools that make it faster and easier for investors to research stock fundamentals. Brian’s background is in physics & computer science and previously worked as a software engineer at GE Healthcare. He enjoys applying his expertise in technology to help find market trends that impact investors. Brian can be reached at brian@finbox.io or at +1 (516) 778-6257.

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