For investors with a long-term horizon, examining earnings trend over time and against industry peers is more insightful than looking at an earnings announcement in one point in time. Investors may find my commentary, albeit very high-level and brief, on Heartland Financial USA Inc (NASDAQ:HTLF) useful as an attempt to give more color around how Heartland Financial USA is currently performing. View our latest analysis for Heartland Financial USA
Was HTLF weak performance lately part of a long-term decline?
For the most up-to-date info, I use data from the most recent 12 months, which annualizes the latest 6-month earnings release, or some times, the latest annual report is already the most recent financial data. This blend allows me to examine different companies on a more comparable basis, using the latest information. For Heartland Financial USA, its most recent bottom-line (trailing twelve month) is US$75.23M, which compared to the previous year’s level, has dropped by -6.09%. Given that these figures are relatively myopic, I’ve created an annualized five-year figure for HTLF’s earnings, which stands at US$48.46M This means that while earnings growth was negative from the prior year, over a longer period of time, Heartland Financial USA’s earnings have been increasing on average.
How has it been able to do this? Let’s take a look at whether it is only due to an industry uplift, or if Heartland Financial USA has seen some company-specific growth. In the last few years, Heartland Financial USA increased its bottom line faster than revenue by efficiently controlling its costs. This has led to a margin expansion and profitability over time. Scanning growth from a sector-level, the US banks industry has been growing, albeit, at a subdued single-digit rate of 4.21% over the previous year, and 8.57% over the previous five years. This suggests that any recent headwind the industry is facing, it’s hitting Heartland Financial USA harder than its peers.
What does this mean?
While past data is useful, it doesn’t tell the whole story. Companies are profitable, but have volatile earnings, can have many factors influencing its business. You should continue to research Heartland Financial USA to get a better picture of the stock by looking at:
- 1. Future Outlook: What are well-informed industry analysts predicting for HTLF’s future growth? Take a look at our free research report of analyst consensus for HTLF’s outlook.
- 2. Financial Health: Is HTLF’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.
- 3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.
NB: Figures in this article are calculated using data from the trailing twelve months from 31 December 2017. This may not be consistent with full year annual report figures.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.