BBVA Banco Frances (NYSE:BBAR) announced its earnings results for the third quarter on November 3, revealing a $0.13 earnings per share (EPS). This figure fell short of analysts’ expectations, which had set the consensus at $0.20. According to Zacks, the bank’s return on equity stood at 10.24% and its net margin was 6.65%. The total revenue for the quarter reached $512.44 million, significantly below the forecast of $871.10 million.
Stock Performance and Financial Metrics
On the trading floor, BBVA Banco Frances shares opened at $15.91. The bank maintains a debt-to-equity ratio of 0.27 and both a quick and current ratio of 1.11. It currently holds a market capitalization of $3.25 billion, with a price-to-earnings (P/E) ratio of 11.88 and a beta of 1.19. Over the last year, the stock has experienced volatility, with a fifty-two week low of $7.76 and a high of $25.01.
In a move to reward shareholders, the bank recently announced an increase in its monthly dividend. The new dividend of $0.033 per share will be distributed on December 1, with the ex-dividend date set for November 21. This marks an increase from the previous dividend of $0.03 per share, resulting in an annualized yield of 2.5%. The current dividend payout ratio is 29.10%.
Analyst Ratings and Market Reactions
Recent analyst reports reflect a mix of optimism and caution regarding BBVA Banco Frances. Zacks upgraded its rating from “strong sell” to “hold” on November 3, while the Goldman Sachs Group elevated their recommendation to “strong buy” on November 10. Conversely, Wall Street Zen downgraded the stock from “hold” to “sell” on November 15.
Additionally, Itau BBA Securities improved BBVA Banco Frances from a “market perform” to an “outperform” rating on October 27. HSBC also made adjustments, raising its rating from “hold” to “buy” while lowering the price target from $21.00 to $17.00. Currently, two analysts have rated the stock as a “strong buy,” four as “buy,” and three as “hold,” resulting in a consensus rating of “moderate buy” along with a price target of $20.00 according to MarketBeat.
BBVA Banco Frances, formally known as Banco BBVA Argentina SA, offers a wide range of banking products and services to individuals and businesses in Argentina. Its offerings include checking and savings accounts, credit cards, loans, insurance, and investment products tailored for both private consumers and small to medium-sized enterprises.
In summary, the bank’s earnings announcement has prompted a reevaluation of its stock among analysts and investors, highlighting the challenges it faces in meeting market expectations while also taking steps to enhance shareholder returns through increased dividends.
