Bank of Hawaii (BOH) Up 4% Since Last Earnings Report: Can It Continue?

Bank of Hawaii (BOH) shares have increased 4% since its last earnings report, underperforming the S&P 500; however, consensus estimates have shifted upward by 8.64% in the past month, leading to a Zacks Rank #1 (Strong Buy) rating, signaling an expected above-average return in the coming months. Comparatively, Westamerica (WABC), another stock in the Zacks Banks - West industry, has gained 6.4% over the past month, but its most recent quarter showed a 12.4% decrease in revenue and a decline in EPS.

Analysis

Bank of Hawaii (BOH) shares have appreciated by 4% since its last earnings report, a gain that nonetheless underperformed the S&P 500. A significant factor influencing its current outlook is the upward trend in earnings estimates over the past month, with the consensus estimate revised upwards by 8.64%. This positive shift has contributed to BOH attaining a Zacks Rank #1 (Strong Buy), signaling expectations of above-average returns in the forthcoming months. However, BOH's profile is nuanced by its VGM Scores: a subpar 'D' for Growth, a more favorable 'B' for Momentum, but a 'D' for Value, culminating in an overall aggregate VGM Score of 'F'. In comparison, Westamerica (WABC), a peer in the Zacks Banks - West industry, experienced a 6.4% share price increase over the past month. Westamerica also holds a Zacks Rank #1 (Strong Buy) and a VGM Score of 'D'. However, WABC's recent financial performance shows a 12.4% year-over-year contraction in revenue to $66.42 million for the quarter ended March 2025, with EPS declining to $1.16 from $1.37 a year prior. Projections for Westamerica's current quarter indicate a further 16.5% year-over-year decrease in EPS to $1.11, with its Zacks Consensus Estimate remaining static over the last 30 days.

Key Decisions for Investors

• Investors should closely monitor Bank of Hawaii's next earnings release to ascertain if the 8.64% upward revision in consensus estimates translates into improved fundamental performance, especially considering its current 'F' aggregate VGM score and recent share price underperformance relative to the S&P 500.
• Despite Westamerica's recent 6.4% share price appreciation and 'Strong Buy' rating, caution is advised due to its reported 12.4% year-over-year revenue decline, a decrease in EPS in the last reported quarter, and a projected 16.5% year-over-year EPS fall for the current quarter.
• The Zacks Rank #1 (Strong Buy) for both BOH and WABC, largely influenced by positive estimate revisions, should be weighed against BOH's weak VGM scores and WABC's deteriorating reported financials, prompting a deeper investigation into the sustainability of these optimistic outlooks.