Equities Analysts Issue Forecasts for HSBC FY2027 Earnings

Key Points

• Erste Group raised its FY2027 EPS estimate for HSBC to $8.95 (from $8.90) while the market consensus sits at $6.66; HSBC also beat latest quarterly expectations with $1.85 EPS (vs. $1.60) and revenue of $17.72B (vs. $17.01B), indicating earnings momentum.
• HSBC sharply increased its quarterly dividend to $2.25 (annualized $9.00, ~11.3% yield) versus $0.50 previously, but the payout ratio is about 148%, raising questions about sustainability.
• Analyst sentiment is broadly positive (7 Buys, 3 Holds; consensus target ~$63), yet the stock trades higher (~$79.58) and faces near‑term risks from geopolitical volatility and sizable foreign outflows in India that could pressure regional revenue and fees.

HSBC Holdings plc (NYSE:HSBC - Free Report) - Equities researchers at Erste Group Bank boosted their FY2027 earnings estimates for shares of HSBC in a research report issued on Tuesday, March 24th. Erste Group Bank analyst S. Lingnau now forecasts that the financial services provider will earn $8.95 per share for the year, up from their prior estimate of $8.90. The consensus estimate for HSBC's current full-year earnings is $6.66 per share.

HSBC (NYSE:HSBC - Get Free Report) last announced its quarterly earnings data on Wednesday, February 25th. The financial services provider reported $1.85 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.60 by $0.25. HSBC had a net margin of 16.07% and a return on equity of 13.10%. The business had revenue of $17.72 billion for the quarter, compared to analysts' expectations of $17.01 billion.

HSBC has been the subject of a number of other research reports. Citigroup reissued a "buy" rating on shares of HSBC in a report on Friday, January 9th. Bank of America upgraded HSBC from a "neutral" rating to a "buy" rating in a research report on Wednesday, December 10th. Morgan Stanley began coverage on HSBC in a research note on Wednesday, January 14th. They set an "equal weight" rating for the company. Weiss Ratings raised shares of HSBC from a "hold (c+)" rating to a "buy (b-)" rating in a report on Monday, March 16th. Finally, Keefe, Bruyette & Woods raised shares of HSBC from a "hold" rating to a "moderate buy" rating in a report on Wednesday, December 17th. Seven equities research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $63.00.

HSBC Stock Down 2.0%

NYSE HSBC opened at $79.58 on Friday. The business has a fifty day moving average price of $85.61 and a two-hundred day moving average price of $76.91. The stock has a market capitalization of $273.35 billion, a PE ratio of 13.15, a PEG ratio of 0.84 and a beta of 0.50. HSBC has a fifty-two week low of $45.66 and a fifty-two week high of $94.79. The company has a debt-to-equity ratio of 0.62, a current ratio of 0.87 and a quick ratio of 0.87.

HSBC Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, April 30th. Investors of record on Friday, March 13th will be given a dividend of $2.25 per share. The ex-dividend date is Friday, March 13th. This represents a $9.00 dividend on an annualized basis and a yield of 11.3%. This is an increase from HSBC's previous quarterly dividend of $0.50. HSBC's dividend payout ratio is presently 148.43%.

Institutional Trading of HSBC

Hedge funds have recently made changes to their positions in the company. Transamerica Financial Advisors LLC raised its position in HSBC by 287.1% during the 4th quarter. Transamerica Financial Advisors LLC now owns 329 shares of the financial services provider's stock worth $26,000 after purchasing an additional 244 shares during the last quarter. Mather Group LLC. acquired a new position in shares of HSBC in the third quarter worth approximately $25,000. Measured Wealth Private Client Group LLC acquired a new position in shares of HSBC in the third quarter worth approximately $26,000. Binnacle Investments Inc boosted its holdings in HSBC by 80.5% in the third quarter. Binnacle Investments Inc now owns 444 shares of the financial services provider's stock valued at $32,000 after acquiring an additional 198 shares during the last quarter. Finally, Retirement Wealth Solutions LLC acquired a new stake in HSBC during the 3rd quarter valued at approximately $32,000. 1.48% of the stock is owned by institutional investors and hedge funds.

HSBC News Roundup

Here are the key news stories impacting HSBC this week:

• Positive Sentiment: Goldman Sachs added coverage with a Buy rating on HSBC, providing a near‑term demand signal from a major bank analyst and supporting sentiment around the stock. Goldman Sachs Buy Coverage
• Positive Sentiment: HSBC’s research and analyst activity (including a double upgrade on Arm and publishing stock picks) highlights the firm’s influential research platform, which can help fee generation and client flows for markets and wealth businesses. HSBC Double-Upgraded Arm
• Positive Sentiment: Management moves: HSBC named a new finance chief for Asia & Middle East — a governance change that may support execution on regional strategy and reassure investors about leadership continuity. New Finance Chief
• Neutral Sentiment: HSBC India CEO says the growth story is “a bit disturbed” but India remains stronger than many peers; this underscores resilience but also flags near‑term headwinds for regional business volumes. HSBC India CEO Comments
• Neutral Sentiment: Research notes from HSBC on macro (NZD/USD risk) and sector views (Big Tech capex over payouts) are informative for clients and may support advisory revenues, but have limited immediate impact on HSBC’s share price. FX Note Big Tech Capex View
• Neutral Sentiment: Disclosure of senior executive dealings is standard regulatory housekeeping; unless details suggest insider concerns, this is a neutral governance item. Senior Executive Dealings
• Negative Sentiment: Geopolitical shock: the Iran war is prompting risk‑off flows and stoking oil price volatility — a direct reason for today’s weaker stock price as investors trim exposure to banks with large Asian and EM footprints. India Fuel Tax Cut
• Negative Sentiment: Market outflows from India: foreign investors are pulling a record (~$12bn) from Indian equities this month, heightening pressure on Indian markets where HSBC has meaningful retail/wholesale exposure and could see lower trading, fee, and credit activity. Record India Outflows
• Negative Sentiment: India’s fuel tax cut to shield consumers increases fiscal strain in India (wider deficit risk), which can slow growth and reduce corporate and consumer banking demand — a headwind for HSBC’s India franchise and regional macro exposure. India Fiscal Hit

HSBC Company Profile

HSBC Holdings plc NYSE: HSBC is a multinational banking and financial services organization headquartered in London. It traces its origins to the Hongkong and Shanghai Banking Corporation, founded in 1865 to facilitate trade between Europe and Asia, and has since grown into one of the world's largest banking groups. The company is publicly listed in multiple markets, including the London Stock Exchange, the Hong Kong Stock Exchange and as an American depositary receipt on the New York Stock Exchange.

HSBC operates a universal banking model, serving retail, commercial, corporate and institutional clients.

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