33 days have passed by since the last earnings report for Itau Unibanco Holding S.A. (NYSE:ITUB) and the new quarterly results look set to arrive in 60 days. The shares of ITUB at the moment are trading at a volume of 18.97 million, which compares with its normal daily standard volume of 17481041 shares. This has led to the shares of the company declining by 0%, currently exchanging hands at $8.24 a share. ITUB stock has been up by $2.56 (-20.3%) ever since it reached its 52-week high of $10.8 back in February 04, 2019. It has progressed below its 50-day moving average of $9.07 and is up 2.36% over the past week. The stock has retreated -15.1% 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 ITUB share price due for a breakout?
Itau Unibanco Holding S.A. (ITUB) Forecasts And Latest Quarter Earnings
Ahead of their fiscal third-quarter to be released on Wednesday, Oct 30, 2019, 4 analysts who are covering the company are estimating that it will record a profit of $0.19 per share, with analysts having different outlooks from $0.19 to $0.19. The current agreed outlook, when compared to the profit recorded last year, is at $0.17 a share, thus an increase of 11.76% is expected. The profit view for a complete financial year for Itau Unibanco Holding S.A. is expected to be around $0.75 in current year, a decline of nearly 4.17% from last year which was $0.72.
Let’s now look at their sales section, ITUB’s revenue is estimated to be $7.07B, a figure which is more than the $7.07B recorded for Q3 last year. Their sequential sales though are expected to grow by 2.68% from their Q2’s sales which were $7.45B. Their full-year outlook is pegged at $30.53B, implying that there would be a drop of -0.23% over the $30.6B they recorded last year in revenue. Itau Unibanco Holding S.A. is projected to get sales lifted by 6.29% in the next quarter, with a revenue target of $32.45B.
Analyzing The Earnings History Of Itau Unibanco Holding S.A. (NYSE:ITUB)
In the past few years, the ITUB stock has been known to miss the Wall Street’s earnings projection. The company missed 16% of the time, according to the data pulled on their earnings, was able to meet predictions on 4 occasions and topped expectations 6 times. Looking at the past trend, the price of Itau Unibanco Holding S.A. shares had risen following the release of their earnings in 9 of the last 15 quarters.
Looking back, here is how Itau Unibanco Holding S.A. (ITUB) 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 Itau Unibanco Holding S.A. recorded 0%, 0.82%, -2.6% and 1.57%, respectively, on the first day of past earnings releases. After a week of earnings reports, the changes were -7.42%, -1.88%, 3.17% and 1.57%. Their post-earnings price movements have resulted in an average decrease of -0.05% and an average decrease of -1.14% in Itau Unibanco Holding S.A. on next day and 7th day, sequentially. ITUB’s one month stock performance led to its shares declining by -7.13% with a return of 22.61% witnessed over the last 52 weeks.
The lower number of analysts at Reuters has assigned a buy or better ratings (3) on the Itau Unibanco Holding S.A. stock, while 3 of them have a rating of a Hold with the 11-year target price suggested by the analysts standing at $10.5. This price target implies potential upside of 27.43 percent over the next 12 months based on the current share price.
Itau Unibanco Holding S.A. (ITUB) Post Earnings Announcement Drift (PEAD)
Back on July 29, 2019, Itau Unibanco Holding S.A. (NYSE:ITUB) released its Q2 results, in which it recorded EPS of $0.17 that fell short of consensus estimates of $0.18. After the earnings were reported, the price of ITUB stock kicked off the session at $9.58 and remained in a range of $9.74 to $9.75 on the first day. The shares were priced at $9.7 at the close with a total volume of shares being 16654862.
On May 02, 2019, the Q1 earnings report was disclosed with EPS of $0.18. This was below the estimation of $0.19 per share. The stock price range of ITUB was between $8.52 and $8.66 on the first-day post announcement, after opening the day at $8.49. The session came to close at $8.6 and there was a total volume of 11189542 shares.
October 29, 2018 was the day when its Q4 results were unveiled. The earnings came in at $0.17, missing the projected $0.18 per share. The very next day, ITUB stock opened at $8.51 while staying in a range of $9.15 to $9.19. At the end, it moved to $8.6 a total volume of shares been 40181424.
In the year-ago Q3 earnings on July 30, 2018, the company saw profit per share of $0.17. That was equal to the $0.17 analysts had expected. Itau Unibanco Holding S.A. share price started at $8.32 on the first full trading day post-earning and then exchanged hands between $8.37 and $8.47 throughout the session. The closing price of $8.41 came on the back of 13047083 shares in volume.