Heritage Commerce (HTBK) Tops Q3 Earnings and Revenue Estimates

Core Viewpoint - Heritage Commerce (HTBK) reported quarterly earnings of $0.24 per share, exceeding the Zacks Consensus Estimate of $0.21 per share, and showing an increase from $0.17 per share a year ago [1][2] Financial Performance - The earnings surprise for the quarter was +14.29%, with the company previously expected to post earnings of $0.19 per share but actually delivering $0.21, resulting in a surprise of +10.53% [2] - Heritage Commerce generated revenues of $50.01 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 2.86%, compared to $42.15 million in the same quarter last year [3] - The company has exceeded consensus revenue estimates three times in the last four quarters [3] Stock Performance and Outlook - Heritage Commerce shares have increased approximately 5.4% since the beginning of the year, while the S&P 500 has gained 13.9% [4] - The future performance of the stock will largely depend on management's commentary during the earnings call and the earnings outlook [4][5] Earnings Estimates and Revisions - The current consensus EPS estimate for the upcoming quarter is $0.21 on revenues of $49.51 million, and for the current fiscal year, it is $0.81 on revenues of $191.87 million [8] - Prior to the earnings release, the estimate revisions trend for Heritage Commerce was unfavorable, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [7] Industry Context - The Zacks Industry Rank for Banks - West is currently in the top 37% of over 250 Zacks industries, suggesting that the industry outlook can significantly impact stock performance [9] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [6]