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Compared to Estimates, HomeStreet (HMST) Q4 Earnings: A Look at Key Metrics

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HomeStreet (HMST - Free Report) reported $45.95 million in revenue for the quarter ended December 2023, representing a year-over-year decline of 29.7%. EPS of -$0.12 for the same period compares to $0.45 a year ago.

The reported revenue represents a surprise of -7.62% over the Zacks Consensus Estimate of $49.73 million. With the consensus EPS estimate being $0.03, the EPS surprise was -500.00%.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how HomeStreet performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

  • Efficiency Ratio: 105.9% versus 97.4% estimated by three analysts on average.
  • Net Interest Margin: 1.6% versus 1.7% estimated by three analysts on average.
  • Average Balance - Total interest earning assets: $8.92 billion versus $8.98 billion estimated by two analysts on average.
  • Net Interest Income: $34.99 million compared to the $38.99 million average estimate based on three analysts.
  • Total noninterest income: $10.96 million versus the three-analyst average estimate of $9.95 million.
  • Loan servicing income: $3.26 million versus the two-analyst average estimate of $3.20 million.
  • Deposit fees: $2.33 million versus $2.25 million estimated by two analysts on average.
View all Key Company Metrics for HomeStreet here>>>

Shares of HomeStreet have returned +45.8% over the past month versus the Zacks S&P 500 composite's +2.5% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.

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