A Look At How CVB Financial Corp. (CVBF) Reacted To Earnings Over The Past Year

20 days have passed by since the last earnings report for CVB Financial Corp. (NASDAQ:CVBF) and the new quarterly results look set to arrive in 71 days. The shares of CVBF at the moment are trading at a volume of 0.54 million, which compares with its normal daily standard volume of 586139 shares. This has led to the shares of the company declining by -1.06%, currently exchanging hands at $20.61 a share. CVBF stock has been up by $4.36 (-17.46%) ever since it reached its 52-week high of $24.97 back in August 21, 2018. It has progressed below its 50-day moving average of $20.97 and is up 0.15% over the past week. The stock has retreated -0.7% since the last one arrived so the question here is that will the downbeat trend in that time frame continue leading up to its next earnings release, or is the CVBF share price due for a breakout?

CVB Financial Corp. (CVBF) Forecasts And Latest Quarter Earnings

Ahead of their fiscal third-quarter to be released on Wednesday, Oct 23, 2019, 8 analysts who are covering the company are estimating that it will record a profit of $0.37 per share, with analysts having different outlooks from $0.36 to $0.38. The current agreed outlook, when compared to the profit recorded last year, is at $0.3 a share, thus an increase of 23.33% is expected. The profit view for a complete financial year for CVB Financial Corp. is expected to be around $1.48 in current year, a decline of nearly 19.35% from last year which was $1.24.

Let’s now look at their sales section, CVBF’s revenue is estimated to be $92.82M, a figure which is less than the $92.82M recorded for Q3 last year. Their sequential sales though are expected to fall by -0.35% from their Q2’s sales which were $111.06M. Their full-year outlook is pegged at $442.1M, implying that there would be an increase of 26.66% over the $349.05M they recorded last year in revenue. CVB Financial Corp. is projected to get sales lifted by 0.62% in the next quarter, with a revenue target of $444.85M.

Analyzing The Earnings History Of CVB Financial Corp. (NASDAQ:CVBF)

In the past few years, the CVBF stock has been known to miss the Wall Street’s earnings projection. The company missed 25% of the time, according to the data pulled on their earnings, was able to meet predictions on 2 occasions and topped expectations 7 times. Looking at the past trend, the price of CVB Financial Corp. shares had risen following the release of their earnings in 18 of the last 38 quarters.

Looking back, here is how CVB Financial Corp. (CVBF) stock reacted to earnings misses and beats. It gave investors reason to be bullish with the price going down after 1 of the last four earnings reports. The shares of CVB Financial Corp. recorded 2.39%, 0.93%, -0.81% and 4.47%, respectively, on the first day of past earnings releases. After a week of earnings reports, the changes were 5.11%, 0.19%, -0.63% and 8.49%. Their post-earnings price movements have resulted in an average increase of 1.75% and an average increase of 3.29% in CVB Financial Corp. on next day and 7th day, sequentially. CVBF’s one month stock performance led to its shares declining by -2.04% with a return of -14.52% witnessed over the last 52 weeks.

The lower number of analysts at Reuters has assigned a buy or better ratings (1) on the CVB Financial Corp. stock, while 7 of them have a rating of a Hold with the 11-year target price suggested by the analysts standing at $22.93. This price target implies potential upside of 11.26 percent over the next 12 months based on the current share price.

CVB Financial Corp. (CVBF) Post Earnings Announcement Drift (PEAD)

Back on July 24, 2019, CVB Financial Corp. (NASDAQ:CVBF) released its Q2 results, in which it recorded EPS of $0.39 that exceeded consensus estimates of $0.37. After the earnings were reported, the price of CVBF stock kicked off the session at $20.78 and remained in a range of $21.5 to $21.72 on the first day. The shares were priced at $21.44 at the close with a total volume of shares being 1060098.

On April 24, 2019, the Q1 earnings report was disclosed with EPS of $0.37. This was above the estimation of $0.35 per share. The stock price range of CVBF was between $21.44 and $21.96 on the first-day post announcement, after opening the day at $21. The session came to close at $21.61 and there was a total volume of 471306 shares.

January 23, 2019 was the day when its Q4 results were unveiled. The earnings came in at $0.31, missing the projected $0.34 per share. The very next day, CVBF stock opened at $21.45 while staying in a range of $21.87 to $22.31. At the end, it moved to $21.91 a total volume of shares been 592904.

In the year-ago Q3 earnings on October 24, 2018, the company saw profit per share of $0.3. That was worse than the $0.32 analysts had expected. CVB Financial Corp. share price started at $19.5 on the first full trading day post-earning and then exchanged hands between $19.5 and $21.37 throughout the session. The closing price of $21.04 came on the back of 1817365 shares in volume.