FY2027 EPS Estimates for HSBC Increased by Erste Group Bank

Key Points

• Erste Group Bank raised HSBC’s FY2027 EPS estimate to $9.35 from $9.30, above the current consensus estimate of $8.62, while maintaining a “Hold” rating.
• HSBC’s latest quarterly results slightly exceeded expectations, with EPS of $2.25 versus $2.24 expected and revenue of $19.04 billion versus $18.66 billion projected.
• Analyst sentiment remains cautious: HSBC has a consensus “Hold” rating, with recent downgrades from BNP Paribas Exane and Citigroup, despite ongoing share buybacks and a quarterly dividend of $0.50 per share.

HSBC Holdings plc (NYSE:HSBC - Free Report) - Research analysts at Erste Group Bank upped their FY2027 earnings estimates for HSBC in a report released on Wednesday, August 5th. Erste Group Bank analyst S. Lingnau now forecasts that the financial services provider will earn $9.35 per share for the year, up from their prior estimate of $9.30. Erste Group Bank has a "Hold" rating on the stock. The consensus estimate for HSBC's current full-year earnings is $8.62 per share.

A number of other equities analysts have also recently weighed in on the company. BNP Paribas Exane cut HSBC from a "hold" rating to a "strong sell" rating in a report on Tuesday, August 4th. Deutsche Bank Aktiengesellschaft restated a "hold" rating on shares of HSBC in a research report on Tuesday, June 23rd. Weiss Ratings reiterated a "hold (c)" rating on shares of HSBC in a research report on Monday, August 3rd. Zacks Research cut shares of HSBC from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, May 5th. Finally, Citigroup lowered shares of HSBC from a "strong-buy" rating to a "hold" rating in a report on Tuesday, August 4th. Three research analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat, HSBC presently has a consensus rating of "Hold".

HSBC Price Performance

NYSE:HSBC opened at $103.73 on Monday. The company has a quick ratio of 0.92, a current ratio of 0.85 and a debt-to-equity ratio of 0.67. HSBC has a 52 week low of $62.90 and a 52 week high of $107.92. The stock's 50-day moving average price is $97.73 and its 200-day moving average price is $91.11. The stock has a market capitalization of $356.50 billion, a PE ratio of 14.71, a price-to-earnings-growth ratio of 0.98 and a beta of 0.57.

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

HSBC Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Friday, September 25th. Shareholders of record on Friday, August 14th will be paid a dividend of $0.50 per share. The ex-dividend date of this dividend is Friday, August 14th. This represents a $2.00 dividend on an annualized basis and a yield of 1.9%. HSBC's payout ratio is 28.09%.

Institutional Trading of HSBC

A number of hedge funds and other institutional investors have recently modified their holdings of HSBC. Northwestern Mutual Wealth Management Co. increased its holdings in shares of HSBC by 1,272.2% during the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 909,464 shares of the financial services provider's stock worth $71,548,000 after buying an additional 843,186 shares during the last quarter. Bleakley Financial Group LLC acquired a new position in HSBC in the fourth quarter valued at approximately $988,000. Quantinno Capital Management LP grew its position in HSBC by 20.9% in the first quarter. Quantinno Capital Management LP now owns 525,775 shares of the financial services provider's stock worth $43,371,000 after acquiring an additional 90,711 shares during the period. May Hill Capital LLC grew its position in HSBC by 105.9% in the fourth quarter. May Hill Capital LLC now owns 23,424 shares of the financial services provider's stock worth $1,843,000 after acquiring an additional 12,047 shares during the period. Finally, Assetmark Inc. increased its stake in HSBC by 74.6% during the fourth quarter. Assetmark Inc. now owns 47,456 shares of the financial services provider's stock worth $3,733,000 after acquiring an additional 20,281 shares during the last quarter. 1.48% of the stock is owned by institutional investors and hedge funds.

Key HSBC News

Here are the key news stories impacting HSBC this week:

• Positive Sentiment: Share buyback continues: HSBC repurchased 340,000 ordinary shares in Hong Kong, extending its recently resumed buyback program. Continued repurchases can support earnings per share and signal management confidence in the valuation. HSBC Advances Hong Kong Share Buy-Back With New Repurchase
• Positive Sentiment: Capital-return activity remains a focus: HSBC raised the maximum amount it is willing to spend on repurchasing four series of debt securities and has resumed share buybacks following an earnings beat. These actions could improve capital efficiency and reinforce investor support. HSBC Expands Debt Tender Offer and Raises May 2028 Notes Cap
• Positive Sentiment: Fundamentals remain supportive: Recent results modestly exceeded earnings and revenue expectations, while market commentary indicates that earnings have held up better than feared. This may be helping sustain confidence in HSBC’s profitability. Earnings haven’t cracked the way the market feared, HSBC data shows
• Neutral Sentiment: HSBC appointed Feras Al Jaramani to lead its UAE private-bank market, a move aimed at strengthening its wealth-management presence in the region. HSBC Private Bank appoints Feras Al Jaramani to lead its UAE Market
• Neutral Sentiment: The sale of HSBC’s Tokyo headquarters to a Mitsubishi-affiliated unit, with HSBC leasing the property through 2029, could unlock capital but is unlikely to materially change near-term earnings. HSBC sells Tokyo HQ to Mitsubishi unit, leases until 2029
• Negative Sentiment: Analyst sentiment deteriorated: BNP Paribas Exane downgraded HSBC to “strong sell,” while Citigroup cut its rating from “strong buy” to “hold.” The back-to-back downgrades may weigh on sentiment, particularly with the stock trading close to its annual high.

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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