Home Bancshares, Inc. (HOMB) is gearing up to report fourth-quarter earnings results after Wednesday's closing bell, and Wall Street's sharpest analysts have been fine-tuning their forecasts ahead of the announcement.
The Conway, Arkansas-based bank is expected to post quarterly earnings of 60 cents per share, representing a solid jump from the 50 cents per share reported in the same period last year. On the revenue side, analysts are projecting $272.48 million for the quarter, up from $260.76 million a year earlier.
Context matters here: Home Bancshares has been actively expanding. Back on December 8, the company announced plans to acquire Mountain Commerce Bancorp in a deal valued at $150.1 million. That kind of M&A activity tends to get analysts thinking about growth trajectories and integration costs.
Speaking of analysts, let's look at what the most accurate forecasters have been saying recently. These aren't just any voices—these are the analysts with proven track records on this stock.
Piper Sandler analyst Stephen Scouten, who boasts a 75% accuracy rate, maintained an Overweight rating on October 17 but trimmed his price target slightly from $35 to $34. Still bullish, just a bit more cautious.
Cantor Fitzgerald analyst Dave Rochester initiated coverage on September 10 with a Neutral rating and a $32 price target. Rochester's accuracy rate sits at 70%, so his middle-of-the-road stance carries weight.
Keefe, Bruyette & Woods analyst Christopher Mcgratty stuck with a Market Perform rating on July 21 but raised his price target from $30 to $32. With a 73% accuracy rate, that upward revision suggests some optimism about the bank's trajectory.
RBC Capital analyst Karl Shepard maintained a Sector Perform rating on April 21 but lowered his price target from $33 to $31. Shepard's accuracy rate is 68%, and his more conservative target reflects a cautious view on the sector.
Stephens & Co. analyst Matt Olney remained bullish with an Overweight rating and a $33 price target on April 21. With a 75% accuracy rate matching Scouten's, Olney clearly sees upside potential.
The stock closed Friday at $28.45, down 1% for the day. That puts shares trading below most analyst price targets, which range from $31 to $34—suggesting analysts see potential upside of roughly 9% to 20% from current levels.
The big question now: Can Home Bancshares deliver results that justify analyst optimism when the numbers drop Wednesday evening?