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Hanmi Financial (NasdaqGS:HAFC) Q3 2020 Earnings Preview

in EARNINGS/INVESTING IDEAS by

Hanmi Financial Corporation (NasdaqGS:HAFC) is scheduled to report Q3 earnings results on October 27, 2020.

The company is expected to report earnings of $0.26/share on revenue of $52.68 million. The consensus earnings per share (EPS) of $0.26/share is based on a poll of 5 analysts and represents a decline in eps of −34.5% over the same quarter last year, when the company reported earnings of $0.40/share.

The revenue forecast of $52.68 million based on a poll of 5 analysts implies a year-over-year (YoY) growth in revenue of 3.5%. Last year the company reported $50.918 million in revenue for the quarter.

Expected to report EPS contraction of −34.5% for Q3, 2020
Metric Expected Prior Year YoY Change
Revenue $52.68 $50.92 3.5%
EPS $0.26 $0.40 −34.5%

Earnings Call Trends

Historically, management has exceeded analyst expectations 1 out of the last 8 tracked quarters, and missed expectations 7 quarters.

What are your expectations from Hanmi Financial Corporation for earnings this quarter? Let us know in the comments!

Analyst Expected vs. Reported EPS
Quarter Expected Reported Surprise Result
Q2, 2020 $0.13 $0.30 130.8% Beat
Q1, 2020 $0.29 $0.08 −72.0% Missed
Q4, 2019 $0.44 $0.33 −25.7% Missed
Q3, 2019 $0.47 $0.40 −14.4% Missed
Q2, 2019 $0.10 $0.07 −23.8% Missed
Q1, 2019 $0.47 $0.46 −2.7% Missed
Q4, 2018 $0.51 $0.46 −9.1% Missed
Q3, 2018 $0.52 $0.51 −1.8% 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 2.9%.

Stock Price Performance After Earnings
Report Date Price Day Prior Price Next Day Change % Result
July 28, 2020 $9.27 $9.53 2.9% Increase
April 30, 2020 $12.65 $10.34 −18.3% Decline
January 28, 2020 $18.37 $16.99 −7.5% Decline
October 22, 2019 $18.71 $18.34 −2.0% Decline

Fundamentals And Technical Analysis

Hanmi Financial Corporation is currently trading at $8.60/share, up 1.7% for the day. The company is trading at approximately 41.4% of its 52-week high of $20.79/share. The company’s stock price is down −9.8% since the last earnings report and up 0.5% over the previous week.

The company’s 14 Day Relative Price Index (RSI) of 43.49 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.


NasdaqGS:HAFC Stock Price Chart
Source: Finbox

The current share price implies a price-to-earnings (P/E) multiple of 9.85 and a forward P/E multiple of 11.79.

Hanmi Financial Corporation’s current share price also implies a price-to-book (P/B) multiple of 0.48. The following table summarizes some other key fundamental ratios:

Data as of October 21, 2020
Metric Value
Last Reported Fiscal Period Key FY2020.Q2
Period End Date June 30, 2020
Stock Price (Current) $8.60
P/E Ratio 9.8x
P/E Ratio (Fwd) 11.8x
PEG Ratio −0.3
Total Debt / Total Capital 61.9%
Levered Free Cash Flow $41.447 million
Price To Sales 1.6x

Finbox

Hanmi Financial Corporation is a micro-cap stock with a market capitalization of $263.6 million. The company operates in the Financials sector and the Banks industry.

Hanmi Financial Corporation operates as the holding company for Hanmi Bank that provides business banking products and services in the United States. The company offers various deposit products, including noninterest-bearing checking accounts, interest-bearing checking and savings accounts, negotiable order of withdrawal accounts, money market accounts, and certificates of deposit. It also provides real estate loans, including commercial property, construction, and residential property loans; and commercial and industrial loans, such as commercial term loans and commercial lines of credit, as well as international finance, and trade services and products comprising letters of credit, and import and export financing. In addition, the company offers consumer loans that include automobile loans, secured and unsecured personal loans, home improvement loans, home equity lines of credit, unsecured lines of credit, and credit cards; and small business administration loans for business purposes, which comprise owner-occupied commercial real estate, business acquisitions, start-ups, franchise financing, working capital, improvements and renovations, inventory and equipment, and debt-refinancing, as well as equipment lease financing. As of February. 06, 2020, it operated a network of 35 full-service branches and 9 loan production offices in California, Texas, Illinois, Virginia, New Jersey, New York, Colorado, Washington, and Georgia. The company was founded in 1982 and is headquartered in Los Angeles, California.

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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