Earnings Update: Bank of Hawaii Corporation (NYSE:BOH) Just Reported Its Yearly Results And Analysts Are Updating Their Forecasts
Bank of Hawaii Corporation (NYSE:BOH) shareholders are probably feeling a little disappointed, since its shares fell 3.3% to US$64.82 in the week after its latest yearly results. It looks like the results were a bit of a negative overall. While revenues of US$665m were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 2.7% to hit US$4.14 per share. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Bank of Hawaii after the latest results.
Check out our latest analysis for Bank of Hawaii
After the latest results, the consensus from Bank of Hawaii's four analysts is for revenues of US$647.0m in 2024, which would reflect a measurable 2.7% decline in revenue compared to the last year of performance. Statutory earnings per share are forecast to sink 10% to US$3.69 in the same period. In the lead-up to this report, the analysts had been modelling revenues of US$658.0m and earnings per share (EPS) of US$3.76 in 2024. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
There were no changes to revenue or earnings estimates or the price target of US$63.60, suggesting that the company has met expectations in its recent result. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Bank of Hawaii, with the most bullish analyst valuing it at US$75.00 and the most bearish at US$46.00 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Bank of Hawaii shareholders.
Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that revenue is expected to reverse, with a forecast 2.7% annualised decline to the end of 2024. That is a notable change from historical growth of 2.3% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 5.5% annually for the foreseeable future. It's pretty clear that Bank of Hawaii's revenues are expected to perform substantially worse than the wider industry.
The Bottom Line
The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Bank of Hawaii's revenue is expected to perform worse than the wider industry. The consensus price target held steady at US$63.60, with the latest estimates not enough to have an impact on their price targets.
With that in mind, we wouldn't be too quick to come to a conclusion on Bank of Hawaii. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Bank of Hawaii analysts - going out to 2025, and you can see them free on our platform here.
Plus, you should also learn about the 1 warning sign we've spotted with Bank of Hawaii .
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
