Equities Analysts Offer Predictions for HSBC FY2027 Earnings

Key Points

• Erste Group Bank raised HSBC’s FY2027 EPS forecast to $9.50 from $9.40, above the broader current-year consensus estimate of $8.56, while maintaining a “Hold” rating.
• HSBC recently narrowly beat quarterly expectations, reporting $2.25 EPS versus $2.24 expected and revenue of $19.04 billion versus $18.66 billion anticipated.
• Analyst sentiment remains mostly cautious, with a consensus “Hold” rating from 12 analysts. HSBC also declared a $0.50 quarterly dividend, equivalent to a 1.9% yield.

HSBC Holdings plc (NYSE:HSBC - Free Report) - Equities research analysts at Erste Group Bank boosted their FY2027 earnings per share (EPS) estimates for HSBC in a report released on Tuesday, September 8th. Erste Group Bank analyst S. Lingnau now expects that the financial services provider will post earnings per share of $9.50 for the year, up from their previous forecast of $9.40. Erste Group Bank has a "Hold" rating on the stock. The consensus estimate for HSBC's current full-year earnings is $8.56 per share.

HSBC (NYSE:HSBC - Get Free Report) last announced its quarterly earnings data on Tuesday, August 4th. The financial services provider reported $2.25 earnings per share for the quarter, topping the consensus estimate of $2.24 by $0.01. HSBC had a return on equity of 13.80% and a net margin of 18.19%.The firm had revenue of $19.04 billion during the quarter, compared to analysts' expectations of $18.66 billion.

HSBC has been the subject of a number of other research reports. Wall Street Zen raised shares of HSBC from a "hold" rating to a "buy" rating in a report on Saturday, August 29th. Weiss Ratings restated a "hold (c)" rating on shares of HSBC in a research report on Monday, August 3rd. Deutsche Bank Aktiengesellschaft reaffirmed a "hold" rating on shares of HSBC in a research note on Tuesday, June 23rd. Citigroup lowered HSBC from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, August 4th. Finally, Royal Bank Of Canada restated a "sector perform" rating on shares of HSBC in a report on Monday, August 17th. Three equities research analysts have rated the stock with a Buy rating, eight have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, HSBC presently has a consensus rating of "Hold".

HSBC Trading Down 1.4%

HSBC opened at $103.63 on Friday. The firm has a 50 day simple moving average of $102.80 and a 200 day simple moving average of $93.98. HSBC has a fifty-two week low of $64.64 and a fifty-two week high of $107.92. The company has a market cap of $356.14 billion, a price-to-earnings ratio of 14.70, a price-to-earnings-growth ratio of 1.00 and a beta of 0.57. The company has a debt-to-equity ratio of 0.67, a current ratio of 0.85 and a quick ratio of 0.92.

HSBC Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Friday, September 25th. Stockholders of record on Friday, August 14th will be issued a $0.50 dividend. The ex-dividend date of this dividend is Friday, August 14th. This represents a $2.00 annualized dividend and a dividend yield of 1.9%. HSBC's payout ratio is 28.09%.

Institutional Trading of HSBC

Several hedge funds have recently added to or reduced their stakes in the business. Transamerica Financial Advisors LLC raised its position in shares of HSBC by 287.1% during the fourth 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 period. Measured Wealth Private Client Group LLC acquired a new stake in HSBC during the 3rd quarter worth approximately $26,000. Binnacle Investments Inc lifted its stake 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 buying an additional 198 shares in the last quarter. Ballast Advisors LLC bought a new position in HSBC in the first quarter valued at approximately $36,000. Finally, Western Wealth Management LLC acquired a new position in shares of HSBC in the first quarter valued at approximately $37,000. Institutional investors and hedge funds own 1.48% of the company's stock.

HSBC News Summary

Here are the key news stories impacting HSBC this week:

• Positive Sentiment: HSBC continued its global share-buyback program, repurchasing and cancelling additional shares. The reduction in shares outstanding can improve earnings per share and signals confidence in the bank’s capital position. HSBC Advances Cross-Market Share Buy-Back with Further Cancellations
• Positive Sentiment: The bank’s decision to redeem CHF 300 million of notes ahead of their 2027 maturity may modestly reduce future financing costs and reflects active balance-sheet management. HSBC to Redeem CHF 300m Notes Ahead of 2027 Maturity
• Neutral Sentiment: HSBC Life Singapore expanded its insurance offering for customers planning for longer lifespans. The move supports the group’s wealth and insurance strategy, but its near-term earnings impact is likely limited. HSBC Life Singapore Expands Insurance Suite
• Negative Sentiment: Pam Kaur, HSBC’s first female CFO, plans to step down in 2027. Although the timing and successor have not been finalized, the leadership transition introduces uncertainty and was the main immediate pressure on the stock. HSBC's first female CFO Pam Kaur to step down in 2027
• Negative Sentiment: HSBC is winding down its transaction-services business in Germany, with more than 300 jobs expected to be phased out by 2028. The restructuring could improve efficiency over time, but also highlights pressure to reduce costs and the risk of lost revenue in the market. HSBC to Wind Down German Transaction Services Business

About HSBC

HSBC Holdings plc is a global banking and financial services organization headquartered in London. Through its subsidiaries and network, the company provides services to personal, commercial and institutional customers, with a particular focus on connecting businesses and investors across international markets.

HSBC's principal activities include retail and wealth banking, commercial banking, global banking and markets, and private banking. Its products and services include current and savings accounts, mortgages, credit and lending, wealth management, investment services, foreign exchange, trade finance, cash management, and capital-markets services.

The company traces its origins to The Hongkong and Shanghai Banking Corporation, which was established in 1865 to finance trade between Asia and Europe.

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