Regional banking company Hope Bancorp (NASDAQ: HOPE) will be announcing earnings results this Tuesday before market hours. Here’s what to look for.
Hope Bancorp beat analysts’ revenue expectations last quarter, reporting revenues of $144.5 million, up 25.3% year on year. It was a slower quarter for the company, with a miss of analysts’ net interest income estimates and a narrow beat of analysts’ EPS estimates.
Is Hope Bancorp a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Hope Bancorp’s revenue to grow 24.7% year on year, a reversal from the 6.4% decrease it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Hope Bancorp has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Hope Bancorp’s peers in the regional banks segment, some have already reported their Q1 results, giving us a hint as to what we can expect. OFG Bancorp delivered year-on-year revenue growth of 4.2%, beating analysts’ expectations by 4.8%, and Republic Bancorp reported a revenue decline of 11.3%, falling short of estimates by 4.8%. OFG Bancorp traded up 7.6% following the results while Republic Bancorp was also up 1.4%.
Read our full analysis of OFG Bancorp’s results here and Republic Bancorp’s results here.
There has been positive sentiment among investors in the regional banks segment, with share prices up 8.1% on average over the last month. Hope Bancorp is up 13% during the same time and is heading into earnings with an average analyst price target of $13.63 (compared to the current share price of $12.41).
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