Latest news with #HOMB
Business Insider
20 hours ago
- Business
- Business Insider
KBW Remains a Hold on Home Bancshares (HOMB)
KBW analyst Christopher Mcgratty maintained a Hold rating on Home Bancshares yesterday and set a price target of $32.00. The company's shares closed yesterday at $30.19. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. According to TipRanks, Mcgratty is a 5-star analyst with an average return of 12.1% and a 69.29% success rate. Mcgratty covers the Financial sector, focusing on stocks such as Comerica, Webster Financial, and Bank of America. Home Bancshares has an analyst consensus of Moderate Buy, with a price target consensus of $32.00, which is a 6.00% upside from current levels. In a report released yesterday, Citi also maintained a Hold rating on the stock with a $30.00 price target. Based on Home Bancshares' latest earnings release for the quarter ending March 31, the company reported a quarterly revenue of $354.8 million and a net profit of $115.21 million. In comparison, last year the company earned a revenue of $355.29 million and had a net profit of $100.11 million Based on the recent corporate insider activity of 38 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of HOMB in relation to earlier this year. Last month, JOHN STEPHEN TIPTON, the Centennial Bank CEO of HOMB sold 24,159.00 shares for a total of $664,855.68.
Yahoo
2 days ago
- Business
- Yahoo
Home BancShares Inc (HOMB) Q2 2025 Earnings Call Highlights: Record Earnings and Strategic ...
Total Assets: Almost $23 billion. Market Capitalization: Just short of $6 billion. Record Earnings: $118.4 million or $0.60 earnings per share. Return on Assets (ROA): 2.08%. Non-GAAP Return on Tangible Common Equity (ROTCE): 18.26%. Tier One Capital Ratio: 15.6%. Leverage Ratio: 13.4%. Total Risk-Based Capital: 19.3%. Tangible Common Equity Growth: 11.25% over the past 12 months. Stock Buybacks: $1 million shares bought back in both Q1 and Q2. Quarterly Dividends: $0.20 per share. Net Interest Margin: 4.44%. Adjusted Return on Assets: 2.02%. Adjusted Efficiency Ratio: 42.01%. Loan Recoveries: $2 million recovered this quarter. CCFG New Commitments: Approximately $500 million in Q2. CCFG Portfolio Growth: $122 million increase during the quarter. Warning! GuruFocus has detected 2 Warning Sign with HOMB. Release Date: July 17, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Home BancShares Inc (NYSE:HOMB) reported record earnings of $118.4 million or $0.60 per share, marking a consistent performance with a return on assets of 2.08%. The company has demonstrated strong financial growth, with tangible common equity increasing by 11.25% over the past 12 months. Home BancShares Inc (NYSE:HOMB) has been aggressive in stock buybacks, purchasing 2 million shares so far this year, which adds value for shareholders. The company has maintained a strong balance sheet with a Tier One capital ratio of 15.6% and a total risk-based capital of 19.3%. The Centennial Commercial Finance Group (CCFG) saw significant portfolio growth, closing approximately $500 million in new commitments for the quarter. Negative Points Deposits ended slightly lower in Q2, down $53 million due to seasonal tax payments, although balances grew in May and June. There is ongoing pressure from competition offering lower rates, which could impact loan growth and profitability. The company is facing challenges in resolving a large non-accrual loan related to a yacht, which is currently in the arrest process. Home BancShares Inc (NYSE:HOMB) is actively seeking acquisitions to boost income, indicating potential challenges in achieving organic growth targets. Expenses were elevated this quarter due to a $3.5 million lawsuit settlement, impacting overall financial performance. Q & A Highlights Q: Can you provide insights into the strong loan growth this quarter and the factors driving it? A: Kevin D. Hester, President and Chief Lending Officer, explained that the growth is not due to increased aggressiveness but rather the result of being in strong markets with good opportunities. The company is taking advantage of what the market offers, despite some competition locking in lower rates prematurely. Q: What are your current thoughts on M&A opportunities, and are you considering acquiring loan assets or whole banks? A: John W. Allison, Chairman and CEO, stated that they are primarily looking at whole bank acquisitions rather than just loan assets. They are exploring several opportunities and aim to find deals that are accretive and make sense for the company. Q: How do you view the potential for a triple accretive deal in the current market environment? A: John W. Allison emphasized that they have historically avoided dilution and are cautious about pursuing deals that would require it. They aim for accretive transactions and are not interested in deals that would dilute shareholder value. Q: Can you discuss the current deposit pricing trends and any pressures you are experiencing? A: Stephen Tipton, CEO of Centennial Bank, noted that deposit pricing pressures remain similar to the previous quarter. They are managing to negotiate competitive rates and are optimistic about reducing costs on maturing CDs in the second half of the year. Q: What are your plans regarding stock buybacks, especially in light of current valuations? A: John W. Allison mentioned that they continue to buy back stock and are considering a special dividend for shareholders. They are evaluating the buyback yield and its impact on shareholder value, and any decision will depend on capital needs for potential acquisitions. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Yahoo
3 days ago
- Business
- Yahoo
Home Bancshares's (NYSE:HOMB) Q2 Sales Beat Estimates
Regional banking company Home Bancshares (NYSE:HOMB) reported Q2 CY2025 results beating Wall Street's revenue expectations , with sales up 6.1% year on year to $271 million. Its non-GAAP profit of $0.58 per share was 2.2% above analysts' consensus estimates. Is now the time to buy Home Bancshares? Find out in our full research report. Home Bancshares (HOMB) Q2 CY2025 Highlights: Net Interest Income: $220 million vs analyst estimates of $218.7 million (3.8% year-on-year growth, 0.6% beat) Net Interest Margin: 4.4% vs analyst estimates of 4.4% (17 basis point year-on-year increase, in line) Revenue: $271 million vs analyst estimates of $260.6 million (6.1% year-on-year growth, 4% beat) Efficiency Ratio: 41.7% vs analyst estimates of 42.9% (1.2 percentage point beat) Adjusted EPS: $0.58 vs analyst estimates of $0.57 (2.2% beat) Market Capitalization: $5.63 billion "I am once again very pleased with our quarterly results. Diluted EPS of $0.60 and net income of $118.4 million are both records for HOMB. The ongoing, consistent performance from our bankers led to numerous other records being set in the second quarter, further highlighting that strength is no accident," said John Allison, Chairman & CEO of HOMB. Company Overview Founded in Conway, Arkansas in 1998 and growing through strategic acquisitions across the Southeast, Home Bancshares (NYSE:HOMB) operates as the bank holding company for Centennial Bank, providing commercial and retail banking services to businesses and individuals across multiple states. Sales Growth In general, banks make money from two primary sources. The first is net interest income, which is interest earned on loans, mortgages, and investments in securities minus interest paid out on deposits. The second source is non-interest income, which can come from bank account, credit card, wealth management, investing banking, and trading fees. Thankfully, Home Bancshares's 9.2% annualized revenue growth over the last five years was impressive. Its growth beat the average bank company and shows its offerings resonate with customers. We at StockStory place the most emphasis on long-term growth, but within financials, a half-decade historical view may miss recent interest rate changes, market returns, and industry trends. Home Bancshares's recent performance shows its demand has slowed significantly as its revenue was flat over the last two years. Note: Quarters not shown were determined to be outliers, impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business. This quarter, Home Bancshares reported year-on-year revenue growth of 6.1%, and its $271 million of revenue exceeded Wall Street's estimates by 4%. Net interest income made up 82.4% of the company's total revenue during the last five years, meaning Home Bancshares barely relies on non-interest income to drive its overall growth. Net interest income commands greater market attention due to its reliability and consistency, whereas non-interest income is often seen as lower-quality revenue that lacks the same dependable characteristics. Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link. Tangible Book Value Per Share (TBVPS) Banks are balance sheet-driven businesses because they generate earnings primarily through borrowing and lending. They're also valued based on their balance sheet strength and ability to compound book value (another name for shareholders' equity) over time. When analyzing banks, tangible book value per share (TBVPS) takes precedence over many other metrics. This measure isolates genuine per-share value by removing intangible assets of debatable liquidation worth. Traditional metrics like EPS are helpful but face distortion from M&A activity and loan loss accounting rules. Home Bancshares's TBVPS grew at an excellent 8.4% annual clip over the last five years. TBVPS growth has also accelerated recently, growing by 11.2% annually over the last two years from $10.87 to $13.44 per share. Over the next 12 months, Consensus estimates call for Home Bancshares's TBVPS to grow by 11.6% to $15, top-notch growth rate. Key Takeaways from Home Bancshares's Q2 Results We enjoyed seeing Home Bancshares beat analysts' revenue and net interest income expectations this quarter. We were also happy its efficiency ratio outperformed Wall Street's estimates. Overall, this print had some key positives. The stock remained flat at $28.60 immediately after reporting. Should you buy the stock or not? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here, it's free. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
3 days ago
- Business
- Yahoo
Home BancShares (HOMB) Meets Q2 Earnings Estimates
Home BancShares (HOMB) came out with quarterly earnings of $0.58 per share, in line with the Zacks Consensus Estimate . This compares to earnings of $0.52 per share a year ago. These figures are adjusted for non-recurring items. A quarter ago, it was expected that this bank holding company would post earnings of $0.54 per share when it actually produced earnings of $0.56, delivering a surprise of +3.7%. Over the last four quarters, the company has surpassed consensus EPS estimates just once. Home BancShares, which belongs to the Zacks Banks - Southeast industry, posted revenues of $271.03 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 3.99%. This compares to year-ago revenues of $254.6 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Home BancShares shares have added about 0.7% since the beginning of the year versus the S&P 500's gain of 6.2%. What's Next for Home BancShares? While Home BancShares has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Home BancShares was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.57 on $263.9 million in revenues for the coming quarter and $2.29 on $1.05 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Banks - Southeast is currently in the top 25% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Third Coast Bancshares, Inc. (TCBX), another stock in the same industry, has yet to report results for the quarter ended June 2025. The results are expected to be released on July 23. This company is expected to post quarterly earnings of $0.75 per share in its upcoming report, which represents a year-over-year change of +19.1%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Third Coast Bancshares, Inc.'s revenues are expected to be $46.89 million, up 12.3% from the year-ago quarter. 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 Home BancShares, Inc. (HOMB) : Free Stock Analysis Report Third Coast Bancshares, Inc. (TCBX) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
3 days ago
- Business
- Yahoo
Home BancShares: Q2 Earnings Snapshot
CONWAY, Ark. (AP) — CONWAY, Ark. (AP) — Home BancShares Inc. (HOMB) on Wednesday reported second-quarter profit of $118.4 million. The bank, based in Conway, Arkansas, said it had earnings of 60 cents per share. Earnings, adjusted for non-recurring gains, were 58 cents per share. The results matched Wall Street expectations. The average estimate of three analysts surveyed by Zacks Investment Research was also for earnings of 58 cents per share. The bank holding company posted revenue of $370.2 million in the period. Its revenue net of interest expense was $271 million, which beat Street forecasts. Three analysts surveyed by Zacks expected $260.6 million. _____ This story was generated by Automated Insights ( using data from Zacks Investment Research. Access a Zacks stock report on HOMB at Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
