When will HSBC release Q3 earnings?
HSBC will release third-quarter earnings before the market opens on Tuesday, October 25. A conference call will be held the same day at 08:30am /3:30 EDT
HSBC Q3 earning consensus
Analysts forecast HSBC will report an 11.4% year-on-year rise in adjusted revenue in Q3 to $13.6 billion, and reported pre-tax profit is forecast to fall 53% to $2.5 billion.
HSBC earnings preview
HSBC share price trades up 0.5% year to date outperforming the wider sector and the broader market. The FTSE trades 7.5% lower so far this year.
HSBC has been the best-performing of the major UK banks after reporting a pre-tax profit of $5 billion in Q2, which was well above forecasts of $3.9 billion. The upbeat earnings were thanks mainly to rising interest rates which boosted net interest income, the return that banks make on loan interest over interest paid on deposits.
Interest rates have continued to rise across the third quarter, which is expected to have a positive effect on NII again this quarter, with a 24% increase forecast
Rising interest rates are a double-edged sword and carry their own risks for the bank. The moves by the central bank are designed to cool the economy, slowing demand and raining the likelihood of more loan defaults. The bank’s bad loan provisions are expected to rise as concerns over an economic slowdown rise. A
less profitable foreign operations. HSBC has already sold out of some operations in US, France, Brazil, and Greece and is currently looking to sell out of its Canada business for $9 billion, in an effort to find more cash for fighting off breakup calls from its largest shareholder PingAn. The Chinese insurance firm, which owns 8,4% of HSBC is pursuing the spin of the Asian business.
On the whole, analysts are positive about HSBS. According to the Financial Times of 21 analysts polled, 4 gave outperform ratings, 4 – buy ratings, and 10 gave hold ratings. Meanwhile, 3 rated the share as underperform.
Where next for HSBC stock?
HSBA stocks had been forming a series of higher lows across the year, however, the upside has been capped by 545/550. However, the stock price tumbled in mid-September, falling below the rising trendline, the 20 & 50 sma.
Having found support at 442p, the price is attempting to rebound, testing resistance around the 470p level, the 20 sma. A bullish crossover on the MACD is keeping buyers hopeful of further upside.
Buyers need to retake 485p the October high to extend the bullish rebound toward 500p psychological level.
On the flip side, should the 20 sma fail to hold, sellers will look for a move below 465p on the April low, before brining 442p the October low back into focus.