Home BancShares Q2 revenue rises, beats estimates on Mountain Commerce acquisition
HOMB•Outlook and analyst view
Home BancShares said the Mountain Commerce acquisition positions it for continued revenue growth and earnings accretion.
The current average analyst rating on the shares is "hold," with 3 "strong buy" or "buy," 6 "hold" and no "sell" or "strong sell" ratings. The average consensus recommendation for the banks peer group is "buy."
Wall Street's median 12-month price target for Home BancShares Inc is $31.00, about 5.8% above its July 15 closing price of $29.29. The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 11 three months ago.
Acquisition helped drive growth
The company completed its Mountain Commerce acquisition, which boosted loan and deposit growth.
Results also benefited from record net revenue and adjusted PPNR, reflecting growth in earning assets and a stable net interest margin, with contributions from the acquisition.
Non-interest income rose on higher service charges and fees, a favorable fair value adjustment on marketable securities, and other income, with additional contributions from the acquisition.
Quarterly results beat estimates
Home BancShares said second-quarter revenue rose and beat analyst expectations, while adjusted EPS also came in above consensus.
| Metric | Beat/Miss | Actual | Consensus Estimate |
|---|---|---|---|
| Q2 Revenue | Beat | $295.1 mln | $289.25 mln (8 Analysts) |
| Q2 Adjusted EPS | Beat | $0.64 | $0.61 (9 Analysts) |
| Q2 EPS | $0.59 |
