Sandy Spring Q3 Earnings: Can NasdaqGS:SASR Hit Its $0.68 EPS Target?

in EARNINGS/INVESTING IDEAS by

Sandy Spring Bancorp, Inc. (NasdaqGS:SASR) is scheduled to report Q3 earnings results on October 22, 2020.

The company is expected to report earnings of $0.68/share on revenue of $120.7 million. The consensus earnings per share (EPS) of $0.68/share is based on a poll of 4 analysts and represents a decline in eps of −17.8% over the same quarter last year, when the company reported earnings of $0.83/share.

The revenue forecast of $120.7 million based on a poll of 4 analysts implies a year-over-year (YoY) growth in revenue of 41.4%. Last year the company reported $85.363 million in revenue for the quarter.

Expected to report EPS contraction of −17.8% for Q3, 2020
Metric Expected Prior Year YoY Change
Revenue $120.74 $85.36 41.4%
EPS $0.68 $0.83 −17.8%

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 Sandy Spring Bancorp, Inc. for earnings this quarter? Let us know in the comments!

Analyst Expected vs. Reported EPS
Quarter Expected Reported Surprise Result
Q2, 2020 $0.40 $0.15 −61.4% Missed
Q1, 2020 $0.65 $0.33 −50.0% Missed
Q4, 2019 $0.79 $0.82 3.3% Beat
Q3, 2019 $0.80 $0.83 3.7% Beat
Q2, 2019 $0.76 $0.79 3.9% Beat
Q1, 2019 $0.74 $0.85 14.5% Beat
Q4, 2018 $0.79 $0.67 −14.8% Missed
Q3, 2018 $0.80 $0.76 −4.4% 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 2.5%.

Stock Price Performance After Earnings
Report Date Price Day Prior Price Next Day Change % Result
July 23, 2020 $23.34 $23.93 2.5% Increase
April 23, 2020 $22.09 $22.24 0.7% Increase
January 23, 2020 $36.19 $35.87 −0.9% Decline
October 17, 2019 $33.42 $33.85 1.3% Increase

Fundamentals And Technical Analysis

Sandy Spring Bancorp, Inc. is currently trading at $24.73/share, down −0.7% for the day. The company is trading at approximately 64.3% of its 52-week high of $38.45/share. The company’s stock price is up 3.3% since the last earnings report and down −0.6% over the previous week.

The company’s 14 Day Relative Price Index (RSI) of 51.79 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.


NasdaqGS:SASR Stock Price Chart
Source: Finbox

The current share price implies a price-to-earnings (P/E) multiple of 21.90 and a forward P/E multiple of 12.68.

Sandy Spring Bancorp, 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) $24.73
P/E Ratio 21.9x
P/E Ratio (Fwd) 12.7x
PEG Ratio −0.4
Total Debt / Total Capital 59.9%
Levered Free Cash Flow $105.5 million
Price To Sales 4x

Finbox

Sandy Spring Bancorp, Inc. is a small-cap stock with a market capitalization of $1.171 billion. The company operates in the Financials sector and the Banks industry.

Sandy Spring Bancorp, Inc. operates as the bank holding company for Sandy Spring Bank that provides commercial and retail banking, mortgage, private banking, and trust services to individuals and businesses in central Maryland, Northern Virginia, and Washington D.C. The company operates in three segments: Community Banking, Insurance, and Investment Management. The Community Banking segment provides financial products and services, including various loan and deposit products. This segment accepts deposits, such as demand, money market savings, regular savings, and time deposits. Its loan products include residential real estate loans; commercial real estate loans, commercial construction loans, and other commercial loans; and consumer loans comprising home equity loans and lines, installment loans, and personal lines of credit. The Insurance segment provides general insurance agency services and annuities. The Investment Management segment provides investment management and financial planning, including cash flow analysis, investment review, tax and retirement planning, insurance analysis, and estate planning to individuals, families, small businesses, and associations. The company also provides equipment leasing, personal trust, and wealth management services. It serves customers through a network of 50 community offices and six financial centers. Sandy Spring Bancorp, Inc. was founded in 1868 and is headquartered in Olney, Maryland.

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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