We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. By pressing "Accept All" or closing out of this banner, you accept our Privacy Policy and Terms of Service, revised from time to time, and you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties. You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Why Is Hancock Whitney (HWC) Down 1.5% Since Last Earnings Report?
Read MoreHide Full Article
It has been about a month since the last earnings report for Hancock Whitney (HWC - Free Report) . Shares have lost about 1.5% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Hancock Whitney due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Hancock Whitney Beats on Q4 Earnings on NII & Fee Income Growth
Hancock Whitney’s fourth-quarter 2024 earnings per share of $1.40 easily beat the Zacks Consensus Estimate of $1.28. The bottom line compared favorably with $1.26 earned in the year-ago quarter.
The results benefited from the increase in non-interest income and NII. Lower expenses and provisions were other positives. However, the decline in total loans was a headwind.
Net income was $122.1 million, up from $50.6 million in the prior-year quarter. Our estimate for the metric was $108.4 million.
For 2024, adjusted earnings of $5.31 surpassed the consensus estimate of $5.19 and grew 2.5% year over year. Net income (GAAP) was $460.8 million, up 17.4% from 2023.
Revenues Rise, Expenses Fall
Quarterly total revenues amounted to $364.8 million, up 18.3% year over year. The top line beat the Zacks Consensus Estimate of $361.3 million.
For 2024, total revenues rose 4.3% to $1.45 billion. The top line outpaced the consensus estimate of $1.44 billion.
NII (TE) increased 1.5% year over year to $276.3 million. The NIM was 3.41%, which expanded 14 bps. Our estimates for NII and NIM were pegged at $276.4 million and 3.43%, respectively.
Non-interest income totaled $91.2 million, up substantially. The rise was driven by an increase in trust fees, service charges on deposit accounts and bank card and ATM fees. We had projected a non-interest income of $86.7 million. Adjusted non-interest income was up 3.4%.
Total non-interest expenses (GAAP) decreased 11.7% to $202.3 million. We had projected expenses of $205.4 million. Adjusted expenses declined marginally.
The efficiency ratio decreased to 54.46% from 55.58% in the year-ago quarter. A decline in the efficiency ratio indicates an increase in profitability.
As of Dec. 31, 2024, total loans were $23.3 billion, down marginally from the prior quarter. Total deposits grew 1.8% on a sequential basis to $29.5 billion. Our estimates for total loans and deposits were pegged at $23.9 billion and $29.7 billion, respectively.
Credit Quality Improves
The provision for credit losses was $11.9 million, down 29.7% from the prior-year quarter. Our estimate for provisions was $18.6 million.
Net charge-offs (annualized) were 0.20% of average total loans, down 7 bps from the prior-year quarter.
Capital Ratios & Profitability Ratios Improve
As of Dec. 31, 2024, the Tier 1 leverage ratio was 11.29%, up from 10.10% at the end of the year-earlier quarter. The common equity Tier 1 ratio was 14.14%, up from 12.33% as of Dec. 31, 2023.
At the end of the fourth quarter, the return on average assets was 1.40%, up from the year-ago period’s 0.56%. The return on average common equity was 11.74%, up from 5.64% in the prior-year quarter.
Share Repurchase Update
In the reported quarter, Hancock Whitney repurchased 0.15 million shares at an average price of $52.50 per share.
2025 Outlook
Management expects the period-end loan balance to be up mid-single-digit with higher growth in the second half of the year. Further, deposit balances are anticipated to be up in the low single digits range.
NII (TE) is projected to be up 3.5-4.5% year over year. Further, modest NIM expansion is anticipated throughout 2025 on the assumption of three 25-bps rate cuts.
Adjusted pre-provision net revenues are expected to rise 3-4%.
Non-interest income is expected to grow 3.5-4.5% from 2024 level.
Adjusted non-interest expenses are expected to rise 4-5% from $816.1 million in 2024, which includes plans to hire additional personnel for revenue generation.
Management expects to maintain an efficiency ratio of 55-56% for the year.
The company expects an effective tax rate of 20-21%.
Management anticipates modest provisions and charge-offs for the year.
Corporate Strategic Objectives (To be achieved by fourth quarter of 2027)
Management expects adjusted return on assets to be between 1.40% and 1.50%.
Management anticipates tangible common equity to be more than 8%.
Management expects adjusted return on tangible common equity to be more than or equal to 18%.
Management aims efficiency ratio to be less than or equal to 55%.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates review.
The consensus estimate has shifted 5.53% due to these changes.
VGM Scores
Currently, Hancock Whitney has a subpar Growth Score of D, however its Momentum Score is doing a lot better with a B. Following the exact same course, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Hancock Whitney has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry Player
Hancock Whitney belongs to the Zacks Banks - Southeast industry. Another stock from the same industry, Regions Financial (RF - Free Report) , has gained 0.8% over the past month. More than a month has passed since the company reported results for the quarter ended December 2024.
Regions Financial reported revenues of $1.82 billion in the last reported quarter, representing a year-over-year change of +0.2%. EPS of $0.59 for the same period compares with $0.52 a year ago.
Regions Financial is expected to post earnings of $0.51 per share for the current quarter, representing a year-over-year change of +15.9%. Over the last 30 days, the Zacks Consensus Estimate has changed 0%.
Regions Financial has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Why Is Hancock Whitney (HWC) Down 1.5% Since Last Earnings Report?
It has been about a month since the last earnings report for Hancock Whitney (HWC - Free Report) . Shares have lost about 1.5% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Hancock Whitney due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Hancock Whitney Beats on Q4 Earnings on NII & Fee Income Growth
Hancock Whitney’s fourth-quarter 2024 earnings per share of $1.40 easily beat the Zacks Consensus Estimate of $1.28. The bottom line compared favorably with $1.26 earned in the year-ago quarter.
The results benefited from the increase in non-interest income and NII. Lower expenses and provisions were other positives. However, the decline in total loans was a headwind.
Net income was $122.1 million, up from $50.6 million in the prior-year quarter. Our estimate for the metric was $108.4 million.
For 2024, adjusted earnings of $5.31 surpassed the consensus estimate of $5.19 and grew 2.5% year over year. Net income (GAAP) was $460.8 million, up 17.4% from 2023.
Revenues Rise, Expenses Fall
Quarterly total revenues amounted to $364.8 million, up 18.3% year over year. The top line beat the Zacks Consensus Estimate of $361.3 million.
For 2024, total revenues rose 4.3% to $1.45 billion. The top line outpaced the consensus estimate of $1.44 billion.
NII (TE) increased 1.5% year over year to $276.3 million. The NIM was 3.41%, which expanded 14 bps. Our estimates for NII and NIM were pegged at $276.4 million and 3.43%, respectively.
Non-interest income totaled $91.2 million, up substantially. The rise was driven by an increase in trust fees, service charges on deposit accounts and bank card and ATM fees. We had projected a non-interest income of $86.7 million. Adjusted non-interest income was up 3.4%.
Total non-interest expenses (GAAP) decreased 11.7% to $202.3 million. We had projected expenses of $205.4 million. Adjusted expenses declined marginally.
The efficiency ratio decreased to 54.46% from 55.58% in the year-ago quarter. A decline in the efficiency ratio indicates an increase in profitability.
As of Dec. 31, 2024, total loans were $23.3 billion, down marginally from the prior quarter. Total deposits grew 1.8% on a sequential basis to $29.5 billion. Our estimates for total loans and deposits were pegged at $23.9 billion and $29.7 billion, respectively.
Credit Quality Improves
The provision for credit losses was $11.9 million, down 29.7% from the prior-year quarter. Our estimate for provisions was $18.6 million.
Net charge-offs (annualized) were 0.20% of average total loans, down 7 bps from the prior-year quarter.
Capital Ratios & Profitability Ratios Improve
As of Dec. 31, 2024, the Tier 1 leverage ratio was 11.29%, up from 10.10% at the end of the year-earlier quarter. The common equity Tier 1 ratio was 14.14%, up from 12.33% as of Dec. 31, 2023.
At the end of the fourth quarter, the return on average assets was 1.40%, up from the year-ago period’s 0.56%. The return on average common equity was 11.74%, up from 5.64% in the prior-year quarter.
Share Repurchase Update
In the reported quarter, Hancock Whitney repurchased 0.15 million shares at an average price of $52.50 per share.
2025 Outlook
Management expects the period-end loan balance to be up mid-single-digit with higher growth in the second half of the year. Further, deposit balances are anticipated to be up in the low single digits range.
NII (TE) is projected to be up 3.5-4.5% year over year. Further, modest NIM expansion is anticipated throughout 2025 on the assumption of three 25-bps rate cuts.
Adjusted pre-provision net revenues are expected to rise 3-4%.
Non-interest income is expected to grow 3.5-4.5% from 2024 level.
Adjusted non-interest expenses are expected to rise 4-5% from $816.1 million in 2024, which includes plans to hire additional personnel for revenue generation.
Management expects to maintain an efficiency ratio of 55-56% for the year.
The company expects an effective tax rate of 20-21%.
Management anticipates modest provisions and charge-offs for the year.
Corporate Strategic Objectives (To be achieved by fourth quarter of 2027)
Management expects adjusted return on assets to be between 1.40% and 1.50%.
Management anticipates tangible common equity to be more than 8%.
Management expects adjusted return on tangible common equity to be more than or equal to 18%.
Management aims efficiency ratio to be less than or equal to 55%.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates review.
The consensus estimate has shifted 5.53% due to these changes.
VGM Scores
Currently, Hancock Whitney has a subpar Growth Score of D, however its Momentum Score is doing a lot better with a B. Following the exact same course, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Hancock Whitney has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry Player
Hancock Whitney belongs to the Zacks Banks - Southeast industry. Another stock from the same industry, Regions Financial (RF - Free Report) , has gained 0.8% over the past month. More than a month has passed since the company reported results for the quarter ended December 2024.
Regions Financial reported revenues of $1.82 billion in the last reported quarter, representing a year-over-year change of +0.2%. EPS of $0.59 for the same period compares with $0.52 a year ago.
Regions Financial is expected to post earnings of $0.51 per share for the current quarter, representing a year-over-year change of +15.9%. Over the last 30 days, the Zacks Consensus Estimate has changed 0%.
Regions Financial has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.