Yahoo Finance FB Financial Corporation Annual Results: Here's What Analysts Are Forecasting For Next Year
There's been a major selloff in FB Financial Corporation (NYSE:FBK) shares in the week since it released its yearly report, with the stock down 29% to US$19.35. FB Financial reported in line with analyst predictions, delivering revenues of US$354m and statutory earnings per share of US$2.65, suggesting the business is executing well and in line with its plan. Analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we gathered the latest post-earnings forecasts to see what analysts' statutory forecasts suggest is in store for next year.
View our latest analysis for FB Financial
After the latest results, the six analysts covering FB Financial are now predicting revenues of US$435.8m in 2020. If met, this would reflect a substantial 23% improvement in sales compared to the last 12 months. Statutory earnings per share are forecast to sink 14% to US$2.32 in the same period. Yet prior to the latest earnings, analysts had been forecasting revenues of US$437.5m and earnings per share (EPS) of US$2.36 in 2020. So it's pretty clear that, although analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
There were no changes to revenue or earnings estimates or the price target of US$38.33, suggesting that the company has met expectations in its recent result. 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 FB Financial at US$44.00 per share, while the most bearish prices it at US$30.00. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.
Further, we can compare these estimates to past performance, and see how FB Financial forecasts compare to the wider market's forecast performance. Analysts are definitely expecting FB Financial's growth to accelerate, with the forecast 23% growth ranking favourably alongside historical growth of 17% per annum 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 4.4% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that FB Financial is expected to grow much faster than its market.
The Bottom Line
The most obvious conclusion from these results is that there's been no major change in the business' prospects in recent times, with analysts holding earnings per share steady, in line with previous estimates. Fortunately, analysts also reconfirmed their revenue estimates, suggesting sales are tracking in line with expectations - and our data does suggest that FB Financial's revenues are expected to grow faster than the wider market. The consensus price target held steady at US$38.33, with the latest estimates not enough to have an impact on analysts' estimated valuations.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for FB Financial going out to 2021, and you can see them free on our platform here.
You can also see whether FB Financial is carrying too much debt, and whether its balance sheet is healthy, for free on our platform here.
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