Veritex Q3 Earnings: Buying Soaring NasdaqGM:VBTX Stock Before Call?

in EARNINGS/INVESTING IDEAS by

Veritex Holdings, Inc. (NasdaqGM:VBTX) is scheduled to report Q3 earnings results after markets close for trading on October 27, 2020.

The company is expected to report earnings of $0.44/share on revenue of $73.323 million. The consensus earnings per share (EPS) of $0.44/share is based on a poll of 5 analysts and represents a decline in eps of −17.7% over the same quarter last year, when the company reported earnings of $0.53/share.

The revenue forecast of $73.323 million based on a poll of 5 analysts implies a year-over-year (YoY) decline in revenue of −7.5%. Last year the company reported $79.304 million in revenue for the quarter.

Expected to report EPS contraction of −17.7% for Q3, 2020
Metric Expected Prior Year YoY Change
Revenue $73.32 $79.30 −7.5%
EPS $0.44 $0.53 −17.7%

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 Veritex Holdings, Inc. for earnings this quarter? Let us know in the comments!

Analyst Expected vs. Reported EPS
Quarter Expected Reported Surprise Result
Q2, 2020 $0.38 $0.43 13.8% Beat
Q1, 2020 $0.45 $0.08 −82.1% Missed
Q4, 2019 $0.61 $0.58 −4.5% Missed
Q3, 2019 $0.52 $0.53 1.3% Beat
Q2, 2019 $0.62 $0.59 −4.8% Missed
Q1, 2019 $0.57 $0.59 3.1% Beat
Q4, 2018 $0.46 $0.47 2.9% Beat
Q3, 2018 $0.46 $0.42 −8.7% 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 7.3%.

Stock Price Performance After Earnings
Report Date Price Day Prior Price Next Day Change % Result
July 28, 2020 $16.36 $17.55 7.3% Increase
April 28, 2020 $15.50 $17.87 15.3% Increase
January 28, 2020 $28.31 $28.12 −0.7% Decline
October 21, 2019 $24.56 $24.90 1.4% Increase

Fundamentals And Technical Analysis

Veritex Holdings, Inc. is currently trading at $20.61/share, up 2.2% for the day. The company is trading at approximately 70.1% of its 52-week high of $29.41/share. The company’s stock price is up 17.4% since the last earnings report and up 3.8% over the previous week.

The company’s 14 Day Relative Price Index (RSI) of 64.88 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.


NasdaqGM:VBTX Stock Price Chart
Source: Finbox

The current share price implies a price-to-earnings (P/E) multiple of 12.09 and a forward P/E multiple of 14.33.

Veritex Holdings, Inc.’s current share price also implies a price-to-book (P/B) multiple of 0.88. 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) $20.61
P/E Ratio 12.1x
P/E Ratio (Fwd) 14.3x
PEG Ratio 0.5
Total Debt / Total Capital 55.6%
Levered Free Cash Flow $125 million
Price To Sales 4.1x

Finbox

Veritex Holdings, Inc. is a small-cap stock with a market capitalization of $1.023 billion. The company operates in the Financials sector and the Banks industry.

Veritex Holdings, Inc. operates as the holding company for Veritex Community Bank that provides various commercial banking products and services to small and medium-sized businesses, and professionals. The company’s deposit products include demand, savings, money market and time deposit accounts, as well as commercial deposit and financial institution money market accounts. Its loan portfolio consists of commercial real estate and general commercial loans, mortgage warehouse loans, residential real estate loans, construction and land loans, farmland loans, and consumer loans, as well as purchased receivables financing. The company also provides a range of online banking solutions, such as access to account balances, online transfers, online bill payment and electronic delivery of customer statements, and ATMs, as well as banking through telephone, mail, and personal appointment. In addition, it offers debit cards, night depository services, direct deposits, cashier’s checks, and letters of credit; treasury management services, including balance reporting, transfers between accounts, wire transfer initiation, automated clearinghouse origination, and stop payments; and cash management deposit products consisting of lockbox, remote deposit capture, positive pay, reverse positive pay, account reconciliation services, zero balance accounts, and sweep accounts. As of December 31, 2019, the company had 25 branches and one mortgage office located in the Dallas-Fort Worth metroplex, as well as 12 full-service branches in the Houston metropolitan area and one branch in Louisville, Kentucky. Veritex Holdings, Inc. was founded in 2009 and is headquartered in Dallas, Texas.

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