Yahoo Finance Analysts Are Updating Their First Community Corporation (NASDAQ:FCCO) Estimates After Its First-Quarter Results
Last week, you might have seen that First Community Corporation (NASDAQ:FCCO) released its quarterly result to the market. The early response was not positive, with shares down 2.3% to US$16.00 in the past week. It was a workmanlike result, with revenues of US$15m coming in 2.7% ahead of expectations, and statutory earnings per share of US$0.34, in line with analyst appraisals. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
See our latest analysis for First Community
Taking into account the latest results, the current consensus from First Community's four analysts is for revenues of US$63.1m in 2024. This would reflect a notable 8.2% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to rise 6.3% to US$1.53. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$63.0m and earnings per share (EPS) of US$1.58 in 2024. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a small dip in their earnings per share forecasts.
It might be a surprise to learn that the consensus price target was broadly unchanged at US$20.25, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. 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 First Community, with the most bullish analyst valuing it at US$21.00 and the most bearish at US$18.00 per share. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's clear from the latest estimates that First Community's rate of growth is expected to accelerate meaningfully, with the forecast 11% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 5.9% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 5.8% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect First Community to grow faster than the wider industry.
The Bottom Line
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for First Community. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at US$20.25, with the latest estimates not enough to have an impact on their price targets.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for First Community going out to 2025, and you can see them free on our platform here.
You can also view our analysis of First Community's balance sheet, and whether we think First Community is carrying too much debt, for free on our platform here.
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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.
