Shares of Bank of Hawaii Corporation (BOH) crafted a new 52-week high, touching $59.39 in the first half of the trading session on Nov 8. However, the stock closed the session at $59.17, which reflects a solid year-to-date return of 33.1%. The trading volume for the session was 222,434 shares.
Despite hitting its 52-week high, this Zacks Rank #3 (Hold) stock has plenty of upside left, given its strong estimate revisions over the last 30 days and expected long-term earnings growth of 7.3%.
Impressive third-quarter 2013 results – including a positive earnings surprise of 1.19% and significant improvement in the credit quality – as well as a strong capital position were the primary growth drivers for Bank of Hawaii.
On Oct 28, Bank of Hawaii reported its third-quarter 2013 earnings of 85 cents per share, beating the Zacks Consensus Estimate by a penny. However, results were below the prior-year quarter earnings of 92 cents.
A year-over-year decline of 2.2% in non-interest expense and a substantial rise in deposits and loans were the tailwinds for the quarter. Moreover, the company’s capital ratios reflect its strong position. However, a 2.9% dip in net interest income and 6.1% fall in non-interest income acted as headwinds for the quarter.
Estimate Revisions Show Potency
Over the last 30 days, 4 out of 9 estimates for 2013 have been revised upward, lifting the Zacks Consensus Estimate by 0.3% to $3.37 per share. For 2014, 6 out of 9 estimates moved north, helping the Zacks Consensus Estimate advance 1.7% to $3.53 per share.
Some better performing North-West banks include Cascade Bancorp (CACB), Glacier Bancorp Inc. (GBCI) and Preferred Bank (PFBC). All these companies carry a Zacks Rank #1 (Strong Buy).