FY2027 Earnings Estimate for HSBC Issued By Erste Group Bank

Key Points

• Erste Group Bank raised HSBC’s FY2027 EPS estimate to $9.55 from $9.50, while maintaining a “Hold” rating. The revised forecast is above the current-year consensus estimate of $8.55.
• HSBC’s latest quarterly results modestly exceeded expectations, with EPS of $2.25 versus the $2.24 consensus and revenue of $19.04 billion compared with estimates of $18.66 billion.
• Analyst sentiment remains cautious: HSBC has an overall “Hold” consensus rating from analysts, with a consensus price target of $97.00. The company recently paid a quarterly dividend of $0.50 per share, representing a 2.1% annualized yield.

HSBC Holdings plc (NYSE:HSBC - Free Report) - Investment analysts at Erste Group Bank boosted their FY2027 EPS estimates for HSBC in a report issued on Thursday, October 8th. Erste Group Bank analyst S. Lingnau now anticipates that the financial services provider will earn $9.55 per share for the year, up from their previous estimate of $9.50. Erste Group Bank currently has a "Hold" rating on the stock. The consensus estimate for HSBC's current full-year earnings is $8.55 per share.

HSBC (NYSE:HSBC - Get Free Report) last posted its quarterly earnings data on Tuesday, August 4th. The financial services provider reported $2.25 earnings per share (EPS) for the quarter, beating 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 company had revenue of $19.04 billion during the quarter, compared to analyst estimates of $18.66 billion.

A number of other analysts also recently issued reports on HSBC. Wall Street Zen upgraded HSBC from a "hold" rating to a "buy" rating in a research 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 restated a "neutral" rating on shares of HSBC in a research report on Wednesday, August 5th. JPMorgan Chase & Co. reaffirmed a "neutral" rating on shares of HSBC in a research note on Thursday, August 6th. Finally, Keefe, Bruyette & Woods lowered shares of HSBC from a "moderate buy" rating to a "hold" rating in a research report on Sunday, September 13th. Three investment analysts have rated the stock with a Buy rating, eleven have given a Hold rating and two have given a Sell rating to the stock. According to MarketBeat.com, the stock has an average rating of "Hold" and a consensus target price of $97.00.

HSBC Price Performance

Shares of NYSE HSBC opened at $94.28 on Tuesday. The firm has a market capitalization of $323.23 billion, a P/E ratio of 13.37, a P/E/G ratio of 0.89 and a beta of 0.58. The company has a quick ratio of 0.92, a current ratio of 0.85 and a debt-to-equity ratio of 0.67. The stock's 50-day simple moving average is $101.98 and its two-hundred day simple moving average is $96.24. HSBC has a twelve month low of $64.64 and a twelve month high of $107.92.

Hedge Funds Weigh In On HSBC

Hedge funds and other institutional investors have recently modified their holdings of the company. Security National Bank of SO Dak purchased a new position in shares of HSBC in the second quarter worth $36,000. Ballast Advisors LLC purchased a new stake in HSBC during the 1st quarter valued at $36,000. Western Wealth Management LLC purchased a new stake in HSBC during the 1st quarter valued at $37,000. Whipplewood Advisors LLC purchased a new stake in HSBC during the 1st quarter valued at $41,000. Finally, SHP Wealth Management bought a new stake in HSBC in the 4th quarter worth $42,000. 1.48% of the stock is currently owned by hedge funds and other institutional investors.

HSBC Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Friday, September 25th. Shareholders of record on Friday, August 14th were paid a dividend of $0.50 per share. The ex-dividend date of this dividend was Friday, August 14th. This represents a $2.00 annualized dividend and a yield of 2.1%. HSBC's payout ratio is 28.09%.

Key Headlines Impacting HSBC

Here are the key news stories impacting HSBC this week:

• Positive Sentiment: Higher FY2027 earnings estimate: Erste Group Bank raised its HSBC earnings-per-share forecast for fiscal 2027 to $9.55 from $9.50. Although the bank retains a “Hold” rating, the revision signals slightly improved profit expectations and places the forecast well above the current-year consensus of $8.55. HSBC earnings estimate update
• Positive Sentiment: Digital-payments innovation: HSBC and Ant reportedly tested tokenized deposits for payments between artificial-intelligence agents on the Jovay platform. The initiative could support HSBC’s positioning in blockchain-based settlement and next-generation financial infrastructure, although it is still an early-stage test with no immediate earnings impact. HSBC and Ant tokenized deposit test
• Neutral Sentiment: Management and staffing updates: HSBC Singapore appointed Henry Tong to lead Customer, International and Marketing, while the group promoted Tom Zhang. These changes may support execution in important Asian markets but are unlikely to materially affect near-term results. HSBC Singapore appointment
• Neutral Sentiment: Employee share awards: HSBC granted conditional shares under its global employee purchase plan. The awards may aid retention and employee alignment, though they could modestly increase dilution over time. HSBC employee share awards
• Negative Sentiment: Greater use of performance-based pay: HSBC is reportedly phasing out fixed-pay allowances for senior staff in favor of larger bonuses. The move may improve cost flexibility and accountability, but could raise compensation volatility and execution risk if bonus costs increase. HSBC senior staff compensation changes
• Negative Sentiment: Cautious macro backdrop: HSBC strategist Max Kettner warned that market sentiment may deteriorate ahead of earnings season. The comments are not specific to HSBC’s operations but could reinforce broader caution toward financial stocks. HSBC strategist market outlook

HSBC Company Profile

HSBC Holdings plc is a global banking and financial services group headquartered in London. Its origins date to the founding of The Hongkong and Shanghai Banking Corporation in 1865, established to support trade between Europe and Asia. HSBC operates through a network spanning major markets in Asia, Europe, the Middle East, North America and Latin America.

The company provides services to personal, commercial and institutional customers. Its activities include retail and wealth banking, commercial banking, global banking and markets, investment banking, trade finance, transaction banking, foreign exchange, lending, insurance and asset management.

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