Hancock Whitney Rises on Q4 Earnings Beat, New Share Buyback Plan
The Gulf Coast lender's board authorized the repurchase of 4.1 million shares, signaling confidence that overshadowed a slight miss on quarterly revenue.
Shares of Hancock Whitney Corporation (NASDAQ: HWC) moved higher after the regional lender posted fourth-quarter earnings that surpassed analyst expectations and announced a new, significant share repurchase program. The move highlights the bank's strong profitability and commitment to returning capital to shareholders, helping investors look past a minor shortfall in revenue.
The Gulfport, Mississippi-based bank reported fourth-quarter earnings of $1.49 per share, beating consensus estimates of $1.43 by 4.0%. According to its latest regulatory filing, the solid bottom-line performance was supported by healthy underlying growth in its core banking operations. While quarterly revenue came in at $389.3 million, a marginal 0.5% below expectations, the bank posted robust linked-quarter annualized growth in both loans (6%) and deposits (9%).
The most significant catalyst for investors was the board's authorization of a new share repurchase plan for up to 4.1 million shares. This new authorization, which represents approximately 4.9% of the company's outstanding shares, came after Hancock Whitney fully utilized its previous buyback authorization. The announcement signals a strong vote of confidence from management in the company's valuation and future prospects.
With a market capitalization of approximately $5.8 billion, the repurchase program represents a substantial commitment to enhancing shareholder value. Such programs are often interpreted by the market as an indication that a company's leadership believes its stock is undervalued and is a tax-efficient way to return cash to investors.
The market's positive reaction pushes HWC's stock price closer to its 52-week high of $68.84, reflecting strong investor momentum. Data shows that Wall Street remains broadly positive on the bank's outlook, with a consensus analyst price target of $74.50, suggesting further potential upside from its current trading levels. The company also offers a dividend yield of approximately 2.56%, adding to its appeal for income-focused investors.
Looking ahead, investors will be watching to see if the strong loan and deposit growth can be sustained in a competitive environment for regional banks. The earnings beat and the aggressive share buyback, however, provide a narrative of operational strength and shareholder-friendly capital management. The results position Hancock Whitney on a solid footing as it navigates the upcoming financial year, with investors clearly cheering the blend of profitability and robust capital returns detailed on its investor relations website.