Investors in Hanmi Financial Corporation (NASDAQ:HAFC) had a good week, as its shares rose 4.1% to close at US$21.56 following the release of its quarterly results. Hanmi Financial reported in line with analyst predictions, delivering revenues of US$58m and statutory earnings per share of US$0.49, suggesting the business is executing well and in line with its plan. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
After the latest results, the six analysts covering Hanmi Financial are now predicting revenues of US$261.2m in 2025. If met, this would reflect a notable 13% improvement in revenue compared to the last 12 months. Per-share earnings are expected to rise 6.8% to US$2.23. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$253.4m and earnings per share (EPS) of US$2.10 in 2025. So there seems to have been a moderate uplift in sentiment following the latest results, given the upgrades to both revenue and earnings per share forecasts for next year.
It will come as no surprise to learn that the analysts have increased their price target for Hanmi Financial 9.1% to US$22.70on the back of these upgrades. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Hanmi Financial, with the most bullish analyst valuing it at US$25.50 and the most bearish at US$21.00 per share. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We can infer from the latest estimates that forecasts expect a continuation of Hanmi Financial'shistorical trends, as the 10% annualised revenue growth to the end of 2025 is roughly in line with the 8.9% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 6.6% per year. So although Hanmi Financial is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.
The Bottom Line
The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Hanmi Financial following these results. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.
With that in mind, we wouldn't be too quick to come to a conclusion on Hanmi Financial. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Hanmi Financial analysts - going out to 2026, and you can see them free on our platform here.
You still need to take note of risks, for example - Hanmi Financial has 1 warning sign we think you should be aware of.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
