HANCOCK WHITNEY CORP (NASDAQ:HWC) Beats Q3 Earnings Estimates Despite Revenue Miss

HANCOCK WHITNEY CORP (NASDAQ:HWC) reported third-quarter earnings that surpassed analyst expectations for profitability, though the market's immediate reaction suggested a more nuanced interpretation of the results.

Earnings and Revenue Performance Versus Estimates

The bank holding company reported non-GAAP earnings per share (EPS) of $1.49 for the third quarter of 2025. This figure came in above the analyst consensus estimate of $1.45 per share, representing an earnings beat. The performance marks an improvement from the $1.32 per diluted share reported in the previous quarter and the $1.33 per share from the same quarter last year.

However, the company's top-line results told a different story. Reported revenue for the quarter was $385.74 million, which fell short of the analyst estimate of $395.23 million. This revenue miss appears to be a primary driver of the negative after-hours market reaction, where the stock was down approximately 2.4%.

Key quarterly figures compared to estimates include:

• Reported EPS: $1.49 vs. Estimate of $1.45
• Reported Revenue: $385.74M vs. Estimate of $395.23M

Market Reaction and Price Action

The initial market response highlights the complex nature of investor sentiment. While a beat on the bottom line is typically viewed positively, the miss on revenue seems to have outweighed that achievement in early trading. The stock had been relatively stable in the weeks leading up to the report, with minimal movement over the past month. The sharp decline in after-hours trading indicates that investors may be focusing on the challenges of revenue generation and top-line growth in the current economic environment, despite the company's success in controlling costs and driving net income higher.

Quarterly Financial Highlights

The earnings release detailed several key points that underpin the quarterly results. Net income saw a significant increase to $127.5 million, up from $113.5 million in the prior quarter. Management highlighted the company's "exceptionally strong performance," pointing to a return on assets (ROA) of 1.46% and an improved efficiency ratio of 54.10%.

The balance sheet showed modest loan growth, with total loans increasing by 1% to $23.6 billion. Conversely, total deposits decreased by 1% to $28.7 billion, which the company attributed to seasonal outflows and a reduction in public fund balances. The net interest margin (NIM) remained stable at 3.49%, a notable feat in what CEO John Hairston described as a "falling rate environment."

Credit quality presented a mixed picture. While criticized commercial loans moderated, nonaccrual loans increased. The company's capital position strengthened, with the Common Equity Tier 1 (CET1) ratio rising to an estimated 14.08%. Hancock Whitney also continued its capital return program, repurchasing 662,500 shares of its common stock during the quarter.

Outlook and Forward Estimates

The press release indicated that management expects "low-single digit growth" for both loans and deposits for the full year 2025. This internal outlook can be compared to analyst projections for the upcoming fourth quarter and full year. Analysts are estimating Q4 2025 revenue of approximately $399.62 million and EPS of $1.47. For the full 2025 year, the sales estimate stands at $1.55 billion.

For a detailed look at historical earnings and future analyst estimates for HANCOCK WHITNEY CORP, you can review the data here.

Disclaimer: This article is for informational purposes only and does not constitute investment advice of any kind.