BBCN Bancorp, Inc. (NASDAQ:BBCN) delivered a profit and missed Wall Street’s expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company.
BBCN Bancorp, Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share decreased 21.43% to $0.22 in the quarter versus EPS of $0.28 in the year-earlier quarter.
Revenue: Decreased 13.09% to $69.7 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: BBCN Bancorp, Inc. reported adjusted EPS income of $0.22 per share. By that measure, the company missed the mean analyst estimate of $0.27. It beat the average revenue estimate of $67.99 million.
Quoting Management: “We continued to make progress strengthening our leadership as the premier Korean-American bank in the nation with the completion of the Pacific International transaction during the quarter,” said Kevin S. Kim, Chairman and Chief Executive Officer of BBCN Bancorp, Inc. “We are pleased with our new loan originations of $221 million for the seasonally slower first quarter. The current market rate environment is pressuring our net interest margin, which declined by 7 basis points to 3.97% on a core basis, excluding the effect of acquisition accounting adjustments. While elevated provision expense due to one large loan impacted earnings for the quarter, we believe our credit costs remain manageable. Pre-tax pre-provision earnings to average assets of 2.54% on an annualized basis underscores BBCN’s core earnings power. Together with the recent announcement of a definitive agreement to acquire Chicago-based Foster Bankshares, we believe BBCN is solidly grounded for continued profitability and growth.”
Key Stats (on next page)…
Revenue decreased 9.23% from $76.79 million in the previous quarter. EPS decreased 21.43% from $0.28 in the previous quarter.
Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.26 to a profit $0.28. For the current year, the average estimate has moved up from a profit of $1.05 to a profit of $1.10 over the last ninety days.
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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)