Have you been eager to see how Hudson City Bancorp, Inc. (HCBK) performed in Q4 in comparison with the market expectations? Let’s quickly scan through the key facts from this NJ-based popular bank’s earnings release this morning:
An Earnings Beat
Hudson City came out with earnings per share of 8 cents, beating the Zacks Consensus Estimate of 5 cents.
Lower operating expenses were primarily responsible for this earnings beat.
How Was the Estimate Revision Trend?
You should note that the earnings estimate revisions for Hudson City depicted a neutral stance prior to the earnings release. The Zacks Consensus Estimate has remained stable over the last 7 days.
Also, Hudson City has a decent earnings surprise history. Before posting an earnings beat in Q4, the company delivered positive surprises in the prior three quarters. Overall, the company surpassed the Zacks Consensus Estimate by an average of 22.03% in the trailing four quarters.
Revenue Came In Higher Than Expected
Hudson City posted revenues (net of interest expenses) of $134.7 million, which significantly beat the Zacks Consensus Estimate of $105.0 million. However, it compared unfavorably with the year-ago number of $149.4 million.
Key Developments to Note:
During 2014, Hudson City began to purchase commercial real estate loans and commercial real estate loan participations which is one of the initiatives in the company's strategic plan. During 2014, the company originated $86.0 million of such loans.
In Dec 2014, the closing date of the proposed merger deal between Hudson City and M&T Bank has been extended for the third time to Apr 30, 2015 from the previous deadline of Dec 31, 2014.
What Zacks Rank Says
The estimate revisions that we discussed earlier have driven a Zacks Rank #2 (Buy) for Hudson City. However, since the latest earnings performance is yet to be reflected in the estimate revisions, the rank is subject to change. While things apparently look favorable, it all depends on what sense the just-released report makes to the analysts.
Check back later for our full write up on this Hudson City earnings report!
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