What You Need To Know Ahead of Huntington Bancshares' Earnings Release

With a market cap of $23.6 billion, Huntington Bancshares Incorporated (HBAN) is a diversified regional bank holding company. Through its subsidiary, The Huntington National Bank, it offers a wide range of financial services, including commercial, consumer, and mortgage banking, as well as wealth management, treasury management, and digital banking solutions. The Columbus, Ohio-based company is expected to announce its fiscal Q4 earnings results on Friday, Jan. 17. 

Ahead of this event, analysts project the bank holding company to report a profit of $0.31 per share, up 14.8% from $0.27 per share in the year-ago quarter. The company has beaten Wall Street's EPS estimates in the last four quarters. In Q3, the company reported an EPS of $0.33, which topped the consensus estimates by 10%. 

For fiscal 2024, analysts expect HBAN to report an EPS of $1.22 per share, down 10.3% from $1.36 in fiscal 2023. However, EPS is expected to increase 9.8% year-over-year to $1.34 per share in fiscal 2025.

Shares of HBAN have gained 27.6% over the past 52 weeks, outperforming the S&P 500 Index's ($SPX) 24.5% rise. Nevertheless, the stock has slightly lagged behind the Financial Select Sector SPDR Fund’s (XLF) 28.6% return over the same period.

Despite Huntington Bancshares surpassing expectations with Q3 adjusted EPS of $0.33 and revenues of $1.9 billion, shares fell 2.6% on Oct. 17 due to concerns over a decline in net interest income (NII) and a 22-basis-point contraction in net interest margin, reflecting profitability pressures. Elevated non-interest expenses rose 3.7% year over year, and an increased efficiency ratio of 59.4% indicated reduced operational efficiency. Credit quality deterioration, including a 23.7% rise in non-performing assets and higher net charge-offs, raised concerns about growing risks in the loan portfolio. 

Analysts' consensus view on Huntington Bancshares’ stock is moderately optimistic, with a "Moderate Buy" rating overall. Among 19 analysts covering the stock, 10 recommend a "Strong Buy," one suggests a "Moderate Buy," seven indicate a “Hold” rating, and one gives a "Strong Sell." As of writing, HBAN is trading below the average analyst price target of $18.55.