Meridian Bank Surpasses Earnings Expectations: A Look at Future Projections

Earnings Summary and Revenue Growth

Meridian Bank (MRBK) announced quarterly earnings of $0.42 per share, exceeding the Zacks Consensus Estimate of $0.35 per share. This marks an improvement from earnings of $0.35 per share a year earlier. All figures have been adjusted for non-recurring items.

This quarterly report indicates an earnings surprise of 20%. In the previous quarter, analysts predicted earnings of $0.32 per share, but the bank delivered only $0.30, resulting in a negative surprise of -6.25%.

In the last four quarters, the bank has managed to exceed consensus EPS estimates twice.

Meridian Bank, part of the Zacks Banks – Northeast sector, reported revenues of $29.07 million for the quarter ending September 2024, which topped the Zacks Consensus Estimate by 9.42%. This is a rise from $25.31 million in revenues during the same quarter last year. The company has exceeded consensus revenue estimates in all four of the last quarters.

Future stock performance will largely depend on insights from management during the earnings call following these results.

Since the start of the year, Meridian Bank’s shares have declined by approximately 6.6%, unlike the S&P 500, which has seen a gain of 21.5% during the same period.

What Lies Ahead for Meridian Bank?

Given the current market underperformance, investors are left wondering about the future direction of the stock.

While there’s no straightforward answer to this important question, analyzing the company’s earnings outlook provides valuable insights. This entails evaluating current consensus earnings expectations for upcoming quarters and observing any recent changes to these forecasts.

Research indicates that stock movements are often closely linked to earnings estimate revisions. Investors can either track these revisions independently or utilize established tools such as the Zacks Rank, which has a strong track record in reflecting the impact of these estimates.

Leading into this earnings report, revisions for Meridian Bank have been favorable. Although the direction and extent of these revisions may shift post-report, the current standing offers the stock a Zacks Rank of #2 (Buy), suggesting it is poised to outperform the market soon. A full list of today’s Zacks #1 Rank (Strong Buy) stocks is available.

It will be interesting to observe how earnings estimates transition for forthcoming quarters and the current fiscal year. The consensus EPS estimate rests at $0.36 on $26.27 million in revenues for the next quarter and $1.25 on $103.53 million for the current fiscal year.

Investors should also be aware that broader industry trends can significantly influence stock performance. The Zacks Industry Rank designates Banks – Northeast in the top 19% of more than 250 Zacks industries. Historical data indicates that the top half of Zacks-rated industries significantly outperform the bottom half.

Looking at the broader Zacks Finance sector, FS KKR Capital (FSK) has yet to report its results for the quarter ended September 2024, with results expected on November 6.

This development company anticipates quarterly earnings of $0.70 per share, reflecting a year-over-year decline of 12.5%. The consensus EPS estimate has remained constant over the last month.

Expected revenues for FS KKR Capital stand at $423.58 million, an 8.9% decrease from the previous year’s quarter.

Is Meridian Bank (MRBK) a Worthy Investment?

Before deciding to invest in Meridian Bank (MRBK), consider exploring Zacks Investment Research’s recommendations for the top stocks to buy over the next 30 days.

Zacks Investment Research has provided valuable tools and independent analysis to investors since 1978. Over the past 25 years, the Zacks Rank stock-rating system has outperformed the S&P 500 with an average annual gain of +24.08% (returns calculated from January 1, 1988, to May 6, 2024).

For the latest recommendations from Zacks Investment Research, download our free report on 5 Stocks Set to Double. Click here for details.

Meridian Bank (MRBK) : Free Stock Analysis Report

FS KKR Capital Corp. (FSK) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.