Earnings Outlook For Hope Bancorp

Hope Bancorp HOPE unveils its next round of earnings this Tuesday, July 20. Get prepared with Benzinga's ultimate preview for Hope Bancorp's Q2 earnings.

What Are Earnings, Net Income, 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

Wall Street expects EPS of $0.38 and sales around $137.35 million. In the same quarter last year, Hope Bancorp reported earnings per share of $0.22 on revenue of $121.05 million.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

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 report earnings in line when it publishes results Tuesday, earnings would be up 72.73%. Revenue would be up 13.46% on a year-over-year basis. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Stock Performance

Shares of Hope Bancorp were trading at $13.19 as of July 16. Over the last 52-week period, shares are up 46.02%. Given that these returns are generally positive, long-term shareholders can be satisfied going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Hope Bancorp is scheduled to hold the call at 12:30:00 ET and can be accessed here.