Bank of Hawaii Earnings: Everything You Must Know Now

Bank of Hawaii Corporation (NYSE:BOH) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.

Bank of Hawaii Corporation Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 5.56% to $0.85 in the quarter versus EPS of $0.90 in the year-earlier quarter.

Revenue: Decreased 11.62% to $135.4 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Bank of Hawaii Corporation reported adjusted EPS income of $0.85 per share. By that measure, the company beat the mean analyst estimate of $0.83. It missed the average revenue estimate of $137.41 million.

Quoting Management: “Bank of Hawaii Corporation continued its trend of solid performance in the second quarter of 2013,” said Peter Ho, Chairman, President and CEO. “Overall loan balances grew 3% from the same quarter last year as strong commercial, indirect automobile and certain other consumer loan growth was partially offset by refinance sensitive loan categories namely residential mortgage and home equity loans. The organization continues to attract quality deposits with consumer and commercial deposit balances up 4% in the quarter from last year. Asset quality continued its trend of improvement in the quarter with lower levels of non-performing assets and a lower ratio of net charge offs to loans. Expenses remained controlled. The recent trend in higher interest rates should positively impact our operating earnings over time through improved net interest margin. We would note, however, that nearer term, we will likely see a meaningful slowing in our mortgage banking business as the refinance market potentially slows and the purchase market remains impacted by exceptionally tight housing inventory.”

Key Stats (on next page)…

Revenue decreased 7.67% from $146.65 million in the previous quarter. EPS increased 4.94% from $0.81 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.87 to a profit $0.83. For the current year, the average estimate has moved down from a profit of $3.52 to a profit of $3.34 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)