Earnings Update: Here's Why Analysts Just Lifted Their Bank of Hawaii Corporation (NYSE:BOH) Price Target To US$58.00

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. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for Bank of Hawaii

Following last week's earnings report, Bank of Hawaii's four analysts are forecasting 2024 revenues to be US$637.3m, approximately in line with the last 12 months. Statutory earnings per share are forecast to reduce 4.8% to US$3.38 in the same period. In the lead-up to this report, the analysts had been modelling 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.

With the analysts reconfirming their revenue and earnings forecasts, it's surprising to see that the price target rose 6.4% to US$58.00. It looks as though they previously had some doubts over whether the business would live up to their expectations. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Bank of Hawaii at US$70.00 per share, while the most bearish prices it at US$44.00. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

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. The period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 1.4% growth on an annualised basis. That is in line with its 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 in mind, we wouldn't be too quick to come to a conclusion on Bank of Hawaii. Long-term earnings power is much more important than next year's profits. We have forecasts for Bank of Hawaii 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.

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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.

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