Shareholders might have noticed that Hanmi Financial Corporation (NASDAQ:HAFC) filed its annual result this time last week. The early response was not positive, with shares down 6.1% to US$23.05 in the past week. Hanmi Financial reported US$271m in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of US$3.32 beat expectations, being 2.4% higher than what the analysts expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
Check out our latest analysis for Hanmi Financial
Taking into account the latest results, the consensus forecast from Hanmi Financial's five analysts is for revenues of US$286.7m in 2023, which would reflect an okay 5.8% improvement in sales compared to the last 12 months. Statutory earnings per share are forecast to shrink 9.4% to US$3.04 in the same period. In the lead-up to this report, the analysts had been modelling revenues of US$295.3m and earnings per share (EPS) of US$3.14 in 2023. The analysts are less bullish than they were before these results, given the reduced revenue forecasts and the minor downgrade to earnings per share expectations.
It'll come as no surprise then, to learn that the analysts have cut their price target 5.0% to US$26.40. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Hanmi Financial analyst has a price target of US$29.00 per share, while the most pessimistic values it at US$24.00. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Hanmi Financial's past performance and to peers in the same industry. The period to the end of 2023 brings more of the same, according to the analysts, with revenue forecast to display 5.8% growth on an annualised basis. That is in line with its 7.0% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 6.5% annually. It's clear that while Hanmi Financial's revenue growth is expected to continue on its current trajectory, it's only expected to grow in line with the industry itself.
The Bottom Line
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Hanmi Financial. Sadly, they also downgraded their sales forecasts, but the business is still expected to grow at roughly the same rate as the industry itself. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Hanmi Financial's future valuation.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Hanmi Financial going out to 2024, and you can see them free on our platform here..
Even so, be aware that Hanmi Financial is showing 2 warning signs in our investment analysis , and 1 of those doesn't sit too well with us...
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Join A Paid User Research Session
You'll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here