Earnings Preview: Bank Of The Ozarks

Jul. 5.12 | About: Bank of (OZRK)

Bank of the Ozarks, Inc. (OZRK) operates as a bank holding company for Bank of the Ozarks that provides various retail and commercial banking services. It offers various deposits, including checking, savings, money market, time deposit, and individual retirement accounts.

It is scheduled to report its Q2 2012 results on July 12, 2012, before the market opens. In this article I will recap the historical results of the company, latest EPS estimates vs. surprises, latest developments and closest competitors' development.

Technical Overview


The stock has a market capitalization of $1.07B and is currently trading at $30.89 with a 52 week range of $19.14 - $32.26. The stock performance year to date: 5.03%. It is currently trading above 20, 50 and 200 SMA.

Key Metrics

  • Trailing P/E: 10.20
  • Forward P/E: 14.50
  • Price/Sales: 4.90
  • Price/Book: 2.41
  • PEG Ratio: 1.57
  • Total Debt: 389.42M
  • Annual dividend yield: 1.40%
  • Return on Equity: 26.69%
  • Return on Assets: 2.92%

Recent EPS Actuals vs. Estimates

The company has met or beaten analysts' estimates in the last four quarters. In the last quarter it reported $0.52 EPS, beating analyst estimates of $0.51.

The consensus EPS is $0.52 based on 10 analysts' estimates, down from $1.46 a year ago. The median target price by analysts for the stock is $32.00.

Average recommendation: Hold

Source: Marketwatch

Analyst Upgrades and Downgrades

  • On January 12, 2012, BB&T Capital Mkts initiated Hold rating for the company.

Latest Developments

  • On May 18, 2012, Bank of the Ozarks has been named the top performing mid-sized publicly held bank in the nation for 2011 by the ABA Banking Journal in the May 2012 issue of the journal.
  • On April 20, 2012, Bank of the Ozarks has been named the top performing regional bank in the nation by SNL Financial based on financials for the year ending December 31, 2011.

Competitors

Bank of the Ozarks, Inc. operates in Regional - Southeast Banks industry. The company could be compared to Capital One Financial Corp. (COF), International Bancshares Corporation (IBOC), Regions Financial Corp. (RF), and Southside Bancshares Inc. (SBSI). Below is the table comparison of the most important ratios between these companies and the industry.

Below is the chart comparison with the stock price changes as a percentage for the selected companies and S&P 500 index for the last one year period.

OZRK ChartClick to enlarge

OZRK data by YCharts

Competitors' Latest Development

  • On April 2, 2012, Regions Financial Corporation announced that it has completed the sale of Morgan Keegan & Company, Inc. and related affiliates to Raymond James Financial Inc. for approximately $1.2 billion.
  • On March 14, 2012, Regions Financial Corporation announced that it has priced a public offering of 152.9 million shares of its common stock at a price to the public of $5.90 per share.
  • On March 14, 2012, Capital One Financial Corp. announced an underwritten public offering of $1.25 billion of its common stock. Morgan Stanley, Barclays Capital, Citigroup and Credit Suisse are acting as book-running managers for the offering.
  • On March 13, 2012, Regions Financial Corporation announced that it has commenced an underwritten public offering of approximately $900 million of its common stock (the "Offering") as part of its plan to repurchase the $3.5 billion of Series A Preferred Stock issued to the U.S. Treasury Department under the Troubled Asset Relief Program's (TARP) Capital Purchase Program (NYSE:CPP).
  • On February 17, 2012, Capital One Financial Corp. announced that it has completed its acquisition of the ING Direct business in the United States from ING Groep for $6.3 billion in cash and approximately 54 million Capital One shares, representing a 9.7% ownership stake.
  • On February 15, 2012, ING Groep NV (ING Group) announced that the Board of Governors of the Federal Reserve System (NYSE:FRB) has approved the acquisition of ING Direct USA by Capital One Financial Corp. from ING Group.
  • On February 6, 2012, Dow Jones reported that Federal Reserve will gather on February 8, 2012 to come up with the review and agreement on the Capital One Financial Corp's acquisition of ING Direct USA, an Internet online banking of ING Groep NV. Total value of a deal amounts USD 9 billion.
  • On January 11, 2012, Regions Financial Corporation announced that it has entered into a stock purchase agreement to sell Morgan Keegan & Company, Inc. and related affiliates to Raymond James Financial Inc., for $930 million.

Sources: Yahoo Finance, Google Finance, Marketwatch, Finviz, Reuters.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.