Yahoo Finance Earnings Miss: First Financial Bankshares, Inc. Missed EPS By 19% And Analysts Are Revising Their Forecasts
Investors in First Financial Bankshares, Inc. (NASDAQ:FFIN) had a good week, as its shares rose 2.4% to close at US$30.01 following the release of its first-quarter results. Revenues were in line with forecasts, at US$130m, although statutory earnings per share came in 19% below what the analysts expected, at US$0.28 per share. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
Check out our latest analysis for First Financial Bankshares
Taking into account the latest results, the current consensus from First Financial Bankshares' five analysts is for revenues of US$538.4m in 2024. This would reflect a meaningful 10% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to accumulate 4.3% to US$1.47. In the lead-up to this report, the analysts had been modelling revenues of US$533.3m and earnings per share (EPS) of US$1.45 in 2024. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
The analysts reconfirmed their price target of US$31.80, showing that the business is executing well and in line with expectations. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values First Financial Bankshares at US$34.00 per share, while the most bearish prices it at US$31.00. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting First Financial Bankshares is an easy business to forecast or the the analysts are all using similar assumptions.
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 Financial Bankshares' rate of growth is expected to accelerate meaningfully, with the forecast 14% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 5.8% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 5.8% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect First Financial Bankshares to grow faster than the wider industry.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at US$31.80, with the latest estimates not enough to have an impact on their price targets.
With that in mind, we wouldn't be too quick to come to a conclusion on First Financial Bankshares. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple First Financial Bankshares analysts - going out to 2025, and you can see them free on our platform here.
You can also see our analysis of First Financial Bankshares' Board and CEO remuneration and experience, and whether company insiders have been buying stock.
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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.
