It's been a good week for Bank of Hawaii Corporation (NYSE:BOH) shareholders, because the company has just released its latest second-quarter results, and the shares gained 2.6% to US$68.64. It looks like the results were a bit of a negative overall. While revenues of US$157m were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 4.6% to hit US$0.81 per share. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
Taking into account the latest results, Bank of Hawaii's four analysts currently expect revenues in 2024 to be US$637.3m, approximately in line with the last 12 months. Statutory earnings per share are expected to dip 4.8% to US$3.38 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$636.7m and earnings per share (EPS) of US$3.39 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.
The consensus price target rose 6.4% to US$58.00despite there being no meaningful change to earnings estimates. It could be that the analystsare reflecting the predictability of Bank of Hawaii's earnings by assigning a price premium. 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$70.00 and the most bearish at US$44.00 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.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We can infer from the latest estimates that forecasts expect a continuation of Bank of Hawaii'shistorical trends, as the 1.4% annualised revenue growth to the end of 2024 is roughly in line with the 1.7% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 6.3% per year. So it's pretty clear that Bank of Hawaii is expected to grow slower than similar companies in the same 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. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Bank of Hawaii analysts - going out to 2025, and you can see them free on our platform here.
We also provide an overview of the Bank of Hawaii Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com