HOPE Earnings Prediction
The chart below shows how HOPE performed 10 days before and after its earnings report, based on data from the past quarters. Typically, HOPE sees a -1.88% change in stock price 10 days leading up to the earnings, and a +2.08% change 10 days following the report. On the earnings day itself, the stock moves by -1.36%. This data can give you a slight idea of what to expect for the next quarter's release.
HOPE Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
105.88M
-16.70%
-2.32%
Gross Margin
--
--
--
Operating Margin
28.34%
-30.44%
-14.04%
Net Margin
22.98%
10.32%
3.10%
EPS
0.20
-9.09%
0.00%
No Data Available
HOPE Earnings Analysis
Hope Bancorp Inc Corporation (HOPE.O) Earnings Conference Call
Positive
Strong Q4 Profitability: Net income for Q4 2024 reached $24.3 million, translating to $0.20 per diluted share, demonstrating strong profitability.
Net Revenue Increase: Pre-provision net revenue increased by 14% quarter over quarter to $40 million, reflecting improved efficiency and profitability.
Loans Receivable Growth: Loans receivable grew to $13.6 billion as of December 31, 2024, marking a 1% annualized increase from June 30, 2024, with a 2% increase quarter over quarter.
Non-Interest Income Surge: Non-interest income surged by 34% from the previous quarter to $16 million, driven by increased gains on SBA loan sales and swap fee income.
Quarterly Dividend Declaration: The Board declared a quarterly common stock dividend of $0.14 per share, reinforcing commitment to returning value to shareholders.
Negative
Net Interest Income Decline: Net interest income decreased by $3,000,000 or 3% from the previous quarter, totaling $102,000,000 for Q4 2024, indicating pressure on earnings despite lower deposit costs.
Net Interest Margin Decline: The net interest margin declined by 5 basis points quarter over quarter to 2.50%, reflecting lower loan yields and a reversal of $1,700,000 in interest income due to loans moving to non-accrual status.
Deposit Decline Challenges: Total deposits decreased by 3% from the prior quarter, amounting to $14,300,000,000, which included a $128,000,000 reduction from the sale of Virginia branches, indicating challenges in maintaining deposit levels.
Charge-Off Concerns: Net charge-offs for Q4 2024 were $13,000,000, resulting in an annualized charge-off ratio of 38 basis points, which is higher than expected and raises concerns about asset quality.
One-Time Transaction Expenses: The anticipated one-time expenses related to the closing of the Territorial Bancorp transaction are projected to be approximately $30,000,000 in 2025, adding pressure to future financial performance.
HOPE FAQs
How does HOPE typically perform around its earnings report dates?
Is Hope Bancorp Inc (HOPE) Q4 2024 Earnings Call Summary positive or negative?
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HOPE Earning Call Sentiment
Earnings call transcript: Hope Bancorp beats Q4 2024 EPS estimates but stock dips
HOPE.O
-1.19%Positive
The earnings call presents a mixed picture: strong non-interest income growth and reduced non-performing assets are positive, but concerns about elevated charge-offs, integration costs, and declining net interest income offset these gains. The merger with Territorial Bancorp offers potential, but uncertainties about expenses and buybacks remain. The market cap suggests moderate sensitivity to these factors, resulting in a neutral outlook.
