Results: Bank of Hawaii Corporation Exceeded Expectations And The Consensus Has Updated Its Estimates

Investors in Bank of Hawaii Corporation (NYSE:BOH) had a good week, as its shares rose 2.0% to close at US$66.34 following the release of its first-quarter results. The result was positive overall - although revenues of US$170m were in line with what the analysts predicted, Bank of Hawaii surprised by delivering a statutory profit of US$0.97 per share, modestly greater than expected. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Following the latest results, Bank of Hawaii's five analysts are now forecasting revenues of US$659.5m in 2025. This would be a credible 3.0% improvement in revenue compared to the last 12 months. Per-share earnings are expected to shoot up 23% to US$4.38. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$702.5m and earnings per share (EPS) of US$3.98 in 2025. So it's pretty clear that while sentiment around revenues has declined following the latest results, the analysts are now more bullish on the company's earnings power.

View our latest analysis for Bank of Hawaii

There's been no real change to the average price target of US$70.33, with the lower revenue and higher earnings forecasts not expected to meaningfully impact the company's valuation over a longer timeframe. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Bank of Hawaii at US$80.00 per share, while the most bearish prices it at US$59.00. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The analysts are definitely expecting Bank of Hawaii's growth to accelerate, with the forecast 4.0% annualised growth to the end of 2025 ranking favourably alongside historical growth of 1.0% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 6.9% annually. So it's clear that despite the acceleration in growth, Bank of Hawaii is expected to grow meaningfully slower than the industry average.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Bank of Hawaii following these results. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. With that said, earnings are more important to the long-term value of the business. The consensus price target held steady at US$70.33, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Bank of Hawaii going out to 2026, and you can see them free on our platform here..

You can also see our analysis of Bank of Hawaii's Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.