Renasant (NasdaqGS:RNST) Q3 Earnings: What Can You Expect?

in EARNINGS/INVESTING IDEAS by

Renasant Corporation (NasdaqGS:RNST) is scheduled to report Q3 earnings results on October 27, 2020.

The company is expected to report earnings of $0.51/share on revenue of $170.8 million. The consensus earnings per share (EPS) of $0.51/share is based on a poll of 8 analysts and represents a decline in eps of −25.4% over the same quarter last year, when the company reported earnings of $0.68/share.

The revenue forecast of $170.8 million based on a poll of 6 analysts implies a year-over-year (YoY) growth in revenue of 13.1%. Last year the company reported $151 million in revenue for the quarter.

Expected to report EPS contraction of −25.4% for Q3, 2020
Metric Expected Prior Year YoY Change
Revenue $170.75 $151.02 13.1%
EPS $0.51 $0.68 −25.4%

Earnings Call Trends

Historically, management has exceeded analyst expectations 2 out of the last 8 tracked quarters, missed 3 quarters, and met expectations 3 quarters.

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

Analyst Expected vs. Reported EPS
Quarter Expected Reported Surprise Result
Q2, 2020 $0.29 $0.52 80.2% Beat
Q1, 2020 $0.55 $0.20 −63.3% Missed
Q4, 2019 $0.66 $0.66 0% Met
Q3, 2019 $0.74 $0.68 −8.1% Missed
Q2, 2019 $0.82 $0.80 −2.2% Missed
Q1, 2019 $0.77 $0.77 0.0% Met
Q4, 2018 $0.78 $0.78 0% Met
Q3, 2018 $0.77 $0.78 1.0% 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 1.0%.

Stock Price Performance After Earnings
Report Date Price Day Prior Price Next Day Change % Result
July 27, 2020 $23.95 $24.19 1.0% Increase
April 28, 2020 $25.27 $25.78 2.0% Increase
January 21, 2020 $35.58 $35.19 −1.1% Decline
October 21, 2019 $36.02 $35.16 −2.4% Decline

Fundamentals And Technical Analysis

Renasant Corporation is currently trading at $27.35/share, up 1.5% for the day. The company is trading at approximately 74.2% of its 52-week high of $36.84/share. The company’s stock price is up 13.1% since the last earnings report and up 2.3% over the previous week.

The company’s 14 Day Relative Price Index (RSI) of 57.54 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.


NasdaqGS:RNST Stock Price Chart
Source: Finbox

The current share price implies a price-to-earnings (P/E) multiple of 15.68 and a forward P/E multiple of 15.67.

Renasant Corporation’s current share price also implies a price-to-book (P/B) multiple of 0.74. 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) $27.35
P/E Ratio 15.7x
P/E Ratio (Fwd) 15.7x
PEG Ratio −0.4
Total Debt / Total Capital 33.0%
Levered Free Cash Flow $151.4 million
Price To Sales 2.8x

Finbox

Renasant Corporation is a small-cap stock with a market capitalization of $1.537 billion. The company operates in the Financials sector and the Banks industry.

Renasant Corporation operates as a bank holding company for Renasant Bank, which provides a range of financial, wealth management, fiduciary, and insurance services to retail and commercial customers. It operates through three segments: Community Banks, Insurance, and Wealth Management. The Community Banks segment offers checking and savings accounts, business and personal loans, asset-based lending, and equipment leasing services, as well as safe deposit and night depository facilities. It also provides commercial, financial, and agricultural loans; equipment financing and leasing; real estate–1-4 family mortgage; real estate–commercial mortgage; real estate–construction loans for the construction of single family residential properties, multi-family properties, and commercial projects; installment loans to individuals; and interim construction loans, as well as automated teller machine (ATM), online and mobile banking, call center, and treasury management services. The Insurance segment provides insurance agency services, including commercial and personal insurance products through insurance carriers. The Wealth Management segment offers range of wealth management and fiduciary services, including administration and management of trust accounts, such as personal and corporate benefit accounts, self-directed individual retirement accounts, and custodial accounts; annuities, mutual funds, and other investment services through a third party broker-dealer; and administers qualified retirement plans, profit sharing and other employee benefit plans, personal trusts, and estates. As of December 31, 2019, the company had 200 banking, insurance, and wealth management offices located in Mississippi, Tennessee, Alabama, Florida, and Georgia; 160 full-service branches and 12 limited-service branches; and 180 ATM at on-premise locations and 30 ATMs located at off-premise sites. Renasant Corporation was founded in 1904 and is headquartered in Tupelo, Mississippi.

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