Benzinga | Oct 23, 2020 10:08AM EDT

Bank of Hawaii's Earnings: A Preview

On Monday, October 26, Bank of Hawaii (NYSE: BOH) will release its latest earnings report. Check out Benzinga's preview to understand the implications.

Net Income, Earnings, And Earnings Per Share

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

Analysts expect Bank of Hawaii earnings of $0.84 per share. Revenue will likely be around $162.50 million, according to the consensus estimate. In the same quarter last year, Bank of Hawaii reported EPS of $1.29 on revenue of $171.40 million.

Why Analyst Estimates And Earnings Surprises Are Important

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.

If the company were to post earnings in line with the consensus estimate when it reports Monday, EPS would be down 34.88%. Revenue would be down 5.19% on a year-over-year basis. In comparison to analyst estimates in the past, here is how the company's reported EPS stacks up:

Quarter Q2 2020 Q1 2020 Q4 2020 Q3 2019EPS Estimate 0.90 0.73 1.44 1.38EPS Actual 0.98 0.87 1.45 1.29Revenue Estimate 166.72 M 166.76 M 170.54 M 169.47 MRevenue Actual 177.96 M 172.12 M 171.59 M 171.40 M

Stock Performance

Over the last 52-week period, shares are down 27.89%. Given that these returns are generally negative, long-term shareholders won't be happy going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Bank of Hawaii is scheduled to hold the call at 14:00:00 ET and can be accessed here.