The First Bancshares (FBMS) reported quarterly earnings of $0.65 per share, surpassing the Zacks Consensus Estimate of $0.64 per share. However, this is down from earnings of $0.76 per share recorded a year earlier. The earnings figures are adjusted for non-recurring items.
Earnings Performance and Market Reactions
This quarterly report marks an earnings surprise of 1.56%. A quarter prior, analysts anticipated earnings of $0.61 per share, but the company delivered $0.63, achieving a surprise of 3.28%.
The First Bancshares has consistently outperformed consensus earnings estimates, achieving this feat three times in the last four quarters.
For the quarter ending September 2024, the bank holding company reported revenues of $71.26 million. This figure fell short of the Zacks Consensus Estimate by 1.31%, a drop from last year’s revenues of $80.03 million. Over the previous four quarters, the company has exceeded revenue estimates twice.
The stock’s immediate price trajectory will largely hinge on management’s insights shared during the earnings call regarding future earnings expectations.
Since the start of the year, First Bancshares shares have increased by approximately 10.3%, in contrast to the S&P 500’s gain of 22.7%.
Despite underperforming relative to the market this year, investors are keen to know what lies ahead for First Bancshares.
Determining the company’s earnings outlook can provide insights. This includes current consensus earnings expectations for upcoming quarters and recent changes in these estimates.
Studies indicate a strong link between short-term stock movements and earnings estimate revisions. Investors can track these changes themselves or utilize tools like the Zacks Rank, which has a proven history of utilizing earnings revisions effectively.
Leading up to this earnings release, the trend of earnings estimate revisions for First Bancshares was mixed. Although revisions may change after the latest report, the stock currently holds a Zacks Rank #3 (Hold), suggesting it should perform in line with the market shortly. A complete list of today’s Zacks #1 Rank (Strong Buy) stocks is available here.
It will be key to monitor how estimates evolve for the coming quarters and the current fiscal year. The latest consensus EPS estimate stands at $0.64 on expected revenues of $72.7 million for the next quarter, and $2.55 on revenues of $285.5 million for the current fiscal year.
Investors should also note that industry outlooks can significantly influence stock performance. According to the Zacks Industry Rank, Banks – Southeast is currently positioned in the bottom 33% of over 250 Zacks industries. Research indicates that the top half of Zacks-ranked industries outperform the bottom half by over 2 to 1.
Monitoring Other Financial Holdings
Meanwhile, Red River Bancshares (RRBI), another player in the broader Zacks Finance sector, has not yet announced its results for the quarter ending September 2024.
This holding company for Red River Bank is projected to report quarterly earnings of $1.18 per share, reflecting a year-over-year increase of 5.4%. The consensus EPS estimate has remained stable over the past month.
Red River Bancshares is anticipated to generate revenues of $27.41 million, which would represent a 4.2% increase compared to last year’s figures.
For those contemplating an investment in The First Bancshares, Inc. (FBMS), resources such as Zacks Investment Research can assist. They provide insights on the best stocks to buy over the next 30 days.
Zacks Investment Research has been dedicated to equipping investors with valuable tools and independent insights since 1978. The Zacks Rank system has historically more than doubled the S&P 500, averaging a gain of 24.08% annually since 1988.
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The First Bancshares, Inc. (FBMS): Free Stock Analysis Report
Red River Bancshares, Inc. (RRBI): Free Stock Analysis Report
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The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Nasdaq, Inc.
