Q4 Earnings Preview for Great Western (NYSE:GWB)

in EARNINGS/INVESTING IDEAS by

Great Western Bancorp, Inc. (NYSE:GWB) is scheduled to report Q4 earnings results on October 28, 2020.

The company is expected to report earnings of $0.40/share on revenue of $121.2 million. The consensus earnings per share (EPS) of $0.40/share is based on a poll of 8 analysts and represents a decline in eps of −55.5% over the same quarter last year, when the company reported earnings of $0.89/share.

The revenue forecast of $121.2 million based on a poll of 5 analysts implies a year-over-year (YoY) decline in revenue of −0.4%. Last year the company reported $121.7 million in revenue for the quarter.

Expected to report EPS contraction of −55.5% for Q4, 2020
Metric Expected Prior Year YoY Change
Revenue $121.22 $121.73 −0.4%
EPS $0.40 $0.89 −55.5%

Earnings Call Trends

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

What are your expectations from Great Western Bancorp, Inc. for earnings this quarter? Let us know in the comments!

Analyst Expected vs. Reported EPS
Quarter Expected Reported Surprise Result
Q3, 2020 $0.24 $0.10 −58.6% Missed
Q2, 2020 $0.63 $0.52 −17.0% Missed
Q1, 2020 $0.77 $0.77 −0.5% Met
Q4, 2019 $0.79 $0.89 12.6% Beat
Q3, 2019 $0.46 $0.47 1.6% Beat
Q2, 2019 $0.78 $0.78 0.0% Met
Q1, 2019 $0.77 $0.79 2.4% Beat
Q4, 2018 $0.77 $0.72 −7.0% 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 falling −8.0%.

Stock Price Performance After Earnings
Report Date Price Day Prior Price Next Day Change % Result
July 29, 2020 $13.81 $12.71 −8.0% Decline
April 30, 2020 $20 $17.16 −14.2% Decline
January 28, 2020 $32.13 $29.85 −7.1% Decline
October 24, 2019 $35.51 $36.12 1.7% Increase

Fundamentals And Technical Analysis

Great Western Bancorp, Inc. is currently trading at $14.88/share, down −1.9% for the day. The company is trading at approximately 40.6% of its 52-week high of $36.62/share. The company’s stock price is up 17.1% since the last earnings report and up 3.1% over the previous week. The company’s 14 Day Relative Price Index (RSI) of 59.66 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.


NYSE:GWB Stock Price Chart
Source: Finbox

The current share price implies a price-to-earnings (P/E) multiple of −1.28 and a forward P/E multiple of 21.71.

Great Western Bancorp, Inc.’s current share price also implies a price-to-book (P/B) multiple of 0.71. The following table summarizes some other key fundamental ratios:

Data as of October 26, 2020
Metric Value
Last Reported Fiscal Period Key FY2020.Q3
Period End Date June 30, 2020
Stock Price (Current) $14.88
P/E Ratio −1.3x
P/E Ratio (Fwd) 21.7x
PEG Ratio 0.0
Total Debt / Total Capital 40.1%
Levered Free Cash Flow $97.444 million
EV / EBITDA

Finbox

Great Western Bancorp, Inc. is a small-cap stock with a market capitalization of $818.6 million. The company operates in the Financials sector and the Banks industry.

Great Western Bancorp, Inc. operates as the bank holding company for Great Western Bank that provides business and agri-business banking, retail banking, and wealth management services in the United States. The company offers noninterest-bearing demand accounts, interest-bearing demand accounts, interest-bearing non-transaction accounts, time deposits, and corporate credit cards. It also provides commercial real estate (CRE) loans, including owner-occupied and non-owner-occupied CRE loans, multifamily residential real estate loans, and construction and development loans; commercial non-real estate loans, such as working capital and other shorter-term lines of credit, and fixed-rate loans; short-term working capital funding, long-term land-related lending, and other tailored services to agri-businesses; and residential mortgage, home equity, auto, and other loans, as well as home equity and general lines of credit. In addition, the company offers wealth management solutions comprising financial planning, private banking, investment management, and trust services; cash management, online business deposit, and wire transfer services; crop insurance; and online, telephone, and mobile banking services. It primarily serves hospitality/tourism, agri-business, freight and transport, and healthcare sectors. As of September 30, 2019, the company’s branch network consisted of 175 branch offices located in 130 communities in Arizona, Colorado, Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, and South Dakota, as well as operated 165 ATMs and 11 company-owned ATMs at off-site locations. Great Western Bancorp, Inc. was founded in 1935 and is headquartered in Sioux Falls, South Dakota.

Expertise: financial technology, analyzing market trends. Brian is a founder at finbox.io, where he’s focused on building tools that make it faster and easier for investors to research stock fundamentals. Brian’s background is in physics & computer science and previously worked as a software engineer at GE Healthcare. He enjoys applying his expertise in technology to help find market trends that impact investors. Brian can be reached at brian@finbox.io or at +1 (516) 778-6257.

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