Independent Bank Q3 Earnings: Can NasdaqGS:INDB Hit Its $0.81 EPS Target?

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Independent Bank Corp. (NasdaqGS:INDB) is scheduled to report Q3 earnings results on October 23, 2020.

The company is expected to report earnings of $0.81/share on revenue of $122.5 million. The consensus earnings per share (EPS) of $0.81/share is based on a poll of 4 analysts and represents a decline in eps of −46.2% over the same quarter last year, when the company reported earnings of $1.50/share.

The revenue forecast of $122.5 million based on a poll of 2 analysts implies a year-over-year (YoY) decline in revenue of −10.2%. Last year the company reported $136.4 million in revenue for the quarter.

Expected to report EPS contraction of −46.2% for Q3, 2020
Metric Expected Prior Year YoY Change
Revenue $122.48 $136.41 −10.2%
EPS $0.81 $1.50 −46.2%

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 Independent Bank Corp. for earnings this quarter? Let us know in the comments!

Analyst Expected vs. Reported EPS
Quarter Expected Reported Surprise Result
Q2, 2020 $0.62 $0.76 22.1% Beat
Q1, 2020 $1.19 $0.78 −34.6% Missed
Q4, 2019 $1.39 $1.38 −0.5% Missed
Q3, 2019 $1.41 $1.50 6.8% Beat
Q2, 2019 $1.31 $1.42 8.4% Beat
Q1, 2019 $1.30 $1.28 −1.7% Missed
Q4, 2018 $1.29 $1.29 −0.2% Missed
Q3, 2018 $1.20 $1.27 5.6% 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 did not react much to the update.

Stock Price Performance After Earnings
Report Date Price Day Prior Price Next Day Change % Result
July 23, 2020 $66.21 $66.76 0.8% Increase
April 23, 2020 $67.13 $66.93 −0.3% Decline
January 16, 2020 $80.26 $80.05 −0.3% Decline
October 17, 2019 $74.31 $80.05 7.7% Increase

Fundamentals And Technical Analysis

Independent Bank Corp. is currently trading at $51.33/share, down −3.0% for the day. The company is trading at approximately 58.9% of its 52-week high of $87.11/share. The company’s stock price is down −23.1% since the last earnings report and down −3.5% over the previous week.

The company’s 14 Day Relative Price Index (RSI) of 32.54 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.


NasdaqGS:INDB Stock Price Chart
Source: Finbox

The current share price implies a price-to-earnings (P/E) multiple of 11.20 and a forward P/E multiple of 17.80.

Independent Bank Corp.’s current share price also implies a price-to-book (P/B) multiple of 1.01. 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) $51.33
P/E Ratio 11.2x
P/E Ratio (Fwd) 17.8x
PEG Ratio 7.3
Total Debt / Total Capital 20.0%
Levered Free Cash Flow $203.2 million
Price To Sales 1.8x

Finbox

Independent Bank Corp. is a small-cap stock with a market capitalization of $1.691 billion. The company operates in the Financials sector and the Banks industry.

Independent Bank Corp. operates as the bank holding company for Rockland Trust Company that provides commercial banking products and services to individuals and small-to-medium sized businesses primarily in Massachusetts. Its products and services include demand deposits and time certificates of deposit, as well as checking, money market, and savings accounts. The company’s loan portfolio includes commercial loans, such as commercial and industrial, asset-based, commercial real estate, commercial construction, and small business loans; consumer real estate loans, including residential mortgages, home equity loans, and loans for the construction of residential properties; and other consumer loans, such as personal loans. Its commercial and industrial loans cover loans for working capital, other business-related purposes, and floor plan financing; asset-based loans consist primarily of revolving lines of credit and term loans; commercial real estate loans include commercial mortgages for construction purposes that are secured by nonresidential properties, multifamily properties, or one-to-four family rental properties; and small business loans comprise businesses with commercial credit needs. The company also provides investment management and trust services to individuals, institutions, small businesses, and charitable institutions; Internet and mobile banking services, as well as automated teller machine cards and debit cards; and mutual fund shares, unit investment trust shares, general securities, fixed and variable annuities, and life insurance. It operates through 95 full service and 2 limited service retail branches, 15 commercial banking centers, 9 investment management offices, and 7 mortgage lending centers in Eastern Massachusetts, Greater Boston, the South Shore, and the Cape and Islands, as well as in Worcester County and Rhode Island. The company was founded in 1907 and is headquartered in Rockland, Massachusetts.

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