Latest news with #HBAN
Globe and Mail
3 days ago
- Business
- Globe and Mail
Jefferies Is Doubling Down on Nvidia. Here Are 3 Other Stocks the Firm Loves Now.
Jefferies recently refreshed its 'Franchise Picks' list, and it sees a solid future for Nvidia (NVDA) as next-gen Blackwell chips are causing the company to remain dominant. The Franchise Picks list is Jefferies' tightest collection of 'Buy'-rated ideas. The firm only admits stocks on which its analysts have solid conviction. Alongside Nvidia, Jefferies also sees Capital One Financial (COF), Expand Energy (EXE), and Huntington Bancshares (HBAN) as top picks. These stocks are riding tailwinds from AI compute, consumer credit scale, the energy boom, and the consolidation in the Midwestern banking sector. There's plenty of upside if things go according to plan. Let's dive in. Stock #1: Capital One Financial (COF) Capital One Financial just won regulatory approval for its $35 billion takeover of Discover. The combined entity is now one of the top card issuers. Capital One already posted solid net income that rose 10% year-over-year last quarter. It now expects to redirect a sizable chunk of Discover spend onto its own processing rails, which could lift margins several hundred basis points. Litigation over deposit practices did cost $425 million, but that is lunch money compared with the incremental cash flow from a vertically integrated payments franchise. Jefferies has maintained its 'Buy' rating on this stock and recently adjusted its price target on COF from $200 to $230. The mean price target is at $217.75, and Jefferies isn't the only firm that's bullish here. Price targets go up to $264. Stock #2: Expand Energy (EXE) Most investors have never heard of Expand Energy, but Jefferies' energy team loves its business. Expand Energy expects to push production to 7.1 bcf‑equivalent‑per‑day in 2025 and 7.5 bcfed the year after. Management just posted a clean earnings beat and reaffirmed a $2.7 billion capital plan to run 12 rigs. The U.S. LNG build‑out means domestic gas (NGN25) demand could rise 18% annually through the decade, and Expand's acreage sits close to Gulf Coast liquefaction hubs. Jefferies raised its target to $135 from $130. The mean price target here is $127.81, and price targets go up to $170. Stock #2: Huntington Bancshares (HBAN) Regional banks remain unloved, but Huntington Bancshares' credit quality looks rock solid. It trades at just under 11 times forward earnings and has a dividend yield of 3.86%. It posted Q1 net income that rose 26% year-over-year, and has had 5% loan growth. It reiterated a 5% to 7% loan and a 3% to 5% deposit CAGR through 2025. The Midwest economy is stronger than coastal investors believe. Manufacturing reshoring is happening, and Huntington sits at the heart of it. It lends to small and midsize firms that are busy rebuilding supply chains. Jefferies initiated coverage last month and set a price target of $20. The mean price target here is $17.65, and Jefferies has the highest price target here among 21 analysts.
Yahoo
18-04-2025
- Business
- Yahoo
Banner Corp (BANR) Q1 2025 Earnings Call Highlights: Strong Core Earnings Amid Rising Credit Risks
Net Profit: $45.1 million or $1.30 per diluted share for Q1 2025. Core Earnings: $59 million for Q1 2025, up from $53 million in Q1 2024. Revenue from Core Operations: $160 million for Q1 2025, compared to $150 million in Q1 2024. Return on Average Assets: 1.15% for Q1 2025. Core Deposits: Represent 89% of total deposits. Loan Growth: Loans increased 5% year-over-year. Core Deposit Growth: Core deposits increased 3% year-over-year. Tangible Common Equity Per Share: Increased by 13% year-over-year. Dividend: Core dividend of $0.48 per common share announced. Delinquent Loans: 0.63% of total loans, up from 0.49% at year-end 2024. Adversely Classified Loans: 1.73% of total loans, up from 1.69% in the previous quarter. Nonperforming Assets: 0.26% of total assets. Loan Losses: $3.7 million for the quarter. Net Provision for Credit Losses: $3.1 million for the quarter. Loan Originations: Down 33% compared to the previous quarter. Loan Outstanding Growth: $84 million increase in the quarter. Net Interest Margin: Increased 10 basis points to 3.92%. Non-Interest Income: Decreased by $900,000 from the prior quarter. Non-Interest Expense: Increased by $1.8 million from the prior quarter. Warning! GuruFocus has detected 4 Warning Sign with HBAN. Release Date: April 17, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Banner Corp (NASDAQ:BANR) reported a net profit of $45.1 million or $1.30 per diluted share for Q1 2025, an increase from $1.09 per share in Q1 2024. Core earnings for Q1 2025 were $59 million, up from $53 million in Q1 2024, demonstrating strong earnings power. The company maintained a strong core deposit base, representing 89% of total deposits, and achieved a 3% increase in core deposits year-over-year. Banner Corp (NASDAQ:BANR) was recognized by Forbes as one of America's 100 Best Banks and one of the best banks in the world, highlighting its strong market reputation. The company announced a core dividend of $0.48 per common share, reflecting confidence in its financial stability and shareholder returns. Delinquent loans increased to 0.63% of total loans, up from 0.49% at year-end and 0.36% in March 2024, indicating rising credit risk. Adversely classified loans rose modestly to 1.73% of total loans, reflecting economic pressures and higher operating costs. Nonperforming assets increased by $3 million, representing 0.26% of total assets, which could impact future profitability. Loan originations were down 33% compared to the previous quarter, particularly in the commercial and commercial real estate portfolios. The impact of trade tariffs and economic uncertainty poses risks to small businesses and consumers, potentially affecting future loan performance. Q: The margin seems better than expected. Can you discuss the components of the margin and any expectations for the future? A: Robert Butterfield, Executive Vice President, Chief Financial Officer, explained that funding costs were flat for the quarter, while yield improved. Moody's forecasts suggest rate cuts in 2025, which could lead to some net interest margin (NIM) expansion in Q2. If funding costs remain flat and loan yields continue to rise, there could be a 5 basis point increase in loan yields while the Fed is on pause. Q: How is the agricultural sector performing, and what are the expectations given the current economic conditions? A: Jill Rice, Executive Vice President, Chief Credit Officer, noted that the agricultural sector is an area of concern due to tariff implications. While most crops are sold domestically, increased tariffs could lead to higher domestic supply and impact pricing. The agricultural sector represents 3% of the loan book, with an average loan size of $1.2 million, indicating manageable risk. Q: Can you provide an update on loan growth expectations for 2025? A: Jill Rice stated that they are targeting mid-single-digit loan growth for 2025, with expectations for more growth in the second half of the year. Despite uncertainty, commercial pipelines are rebuilding, and the company hit its Q1 expectations, maintaining confidence in the 2025 plan. Q: What is the outlook for the margin in 2025, and is there potential to reach a 4% margin? A: Robert Butterfield indicated that as long as the Fed is on pause or gradually decreasing rates, the margin should progress higher. While not providing a specific timeline, he noted that historically, the company has been above a 4% margin and could reach that level again under favorable market conditions. Q: How is Banner Corp managing potential impacts from tariffs and trade wars? A: Jill Rice explained that the company is closely monitoring clients and the impact on their bottom lines. Sectors like technology, agriculture, and manufacturing could be affected. However, the company's diverse and granular loan portfolio, with strong sponsors and guarantees, helps mitigate risks. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
Yahoo
17-04-2025
- Business
- Yahoo
Huntington Bancshares (HBAN) Earnings Expected to Grow: Should You Buy?
Huntington Bancshares (HBAN) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended March 2025. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price. The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on April 17. On the other hand, if they miss, the stock may move lower. While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise. This regional bank holding company is expected to post quarterly earnings of $0.31 per share in its upcoming report, which represents a year-over-year change of +10.7%. Revenues are expected to be $1.9 billion, up 7.3% from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 1.78% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts. Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For Huntington Bancshares, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -2.16%. On the other hand, the stock currently carries a Zacks Rank of #3. So, this combination makes it difficult to conclusively predict that Huntington Bancshares will beat the consensus EPS estimate. Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that Huntington Bancshares would post earnings of $0.31 per share when it actually produced earnings of $0.34, delivering a surprise of +9.68%. Over the last four quarters, the company has beaten consensus EPS estimates four times. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Huntington Bancshares doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Another stock from the Zacks Banks - Midwest industry, Commerce Bancshares (CBSH), is soon expected to post earnings of $0.93 per share for the quarter ended March 2025. This estimate indicates a year-over-year change of +8.1%. Revenues for the quarter are expected to be $415.93 million, up 4.5% from the year-ago quarter. Over the last 30 days, the consensus EPS estimate for Commerce has been revised 0.8% down to the current level. Nevertheless, the company now has an Earnings ESP of 0.54%, reflecting a higher Most Accurate Estimate. When combined with a Zacks Rank of #3 (Hold), this Earnings ESP indicates that Commerce will most likely beat the consensus EPS estimate. The company beat consensus EPS estimates in each of the trailing four quarters. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Huntington Bancshares Incorporated (HBAN) : Free Stock Analysis Report Commerce Bancshares, Inc. (CBSH) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
