A week ago, Bank of Hawaii Corporation (NYSE:BOH) came out with a strong set of third-quarter numbers that could potentially lead to a re-rate of the stock. It was overall a positive result, with revenues beating expectations by 7.4% to hit US$171m. Bank of Hawaii also reported a statutory profit of US$1.17, which was an impressive 21% above what the analysts had forecast. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. 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.
See our latest analysis for Bank of Hawaii
Taking into account the latest results, the four analysts covering Bank of Hawaii provided consensus estimates of US$647.0m revenue in 2024, which would reflect a noticeable 5.9% decline over the past 12 months. Statutory earnings per share are forecast to plunge 27% to US$3.58 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$647.0m and earnings per share (EPS) of US$3.52 in 2024. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
It will come as no surprise then, to learn that the consensus price target is largely unchanged at US$45.50. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Bank of Hawaii, with the most bullish analyst valuing it at US$53.00 and the most bearish at US$31.00 per share. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.
Of course, another way to look at these forecasts is to place them into context against the industry itself. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 4.8% by the end of 2024. This indicates a significant reduction from annual growth of 2.5% 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 4.3% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Bank of Hawaii is expected to lag the wider industry.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
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 forecasts for Bank of Hawaii going out to 2025, and you can see them free on our platform here.
However, before you get too enthused, we've discovered 1 warning sign for Bank of Hawaii that you should be aware of.
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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.