CB Financial Services Reports Strong Earnings But Faces Challenges Ahead
CB Financial Services (CBFV) has announced quarterly earnings of $0.55 per share, exceeding the Zacks Consensus Estimate of $0.51 per share. This marks a slight increase from last year’s earnings of $0.52 per share, after adjusting for non-recurring items.
This earnings report reveals a surprise of 7.84%. Previously, it was anticipated that the Pennsylvania-based Community Bank’s holding company would report earnings of $0.52 per share, and it met that expectation last quarter without a surprise.
Over the past year, the company has outperformed consensus EPS estimates three out of four times. In the recent quarter ending September 2024, CB Financial Services reported revenues of $12.71 million, surpassing the Zacks Consensus Estimate by 0.85%. However, this reflects a decline from the previous year’s revenues of $13.13 million. Over the last four quarters, the company has also exceeded consensus revenue estimates three times.
The immediate movement in CB Financial Services’ stock price will largely rely on management’s insights during the earnings call regarding future earnings expectations.
Year-to-date, shares of CB Financial Services have increased by about 21.3%, closely trailing the S&P 500’s gain of 21.8%.
Looking Ahead for CB Financial Services
While CB Financial Services has not performed as well as the market this year, investors are left wondering what lies ahead for the stock.
Determining future performance can be tricky, but tracking earnings outlooks is one reliable method. This includes current and revised consensus earnings expectations for upcoming quarters. Historical data shows a strong link between stock movements and trends in earnings estimate revisions. Investors can monitor these trends independently or utilize a tool like the Zacks Rank, which has consistently demonstrated the effectiveness of earnings estimate revisions.
Before this most recent earnings release, the trend for revisions in estimates for CB Financial Services appeared unfavorable. Notably, despite the recent earnings report, the stock currently has a Zacks Rank #4 (Sell), indicating an expected underperformance against the market in the near term. A complete list of today’s Zacks #1 Rank (Strong Buy) stocks is available for further insights.
Investors are advised to pay attention to how estimates for upcoming quarters and the current fiscal year evolve. Current consensus EPS estimates stand at $0.52 for the next quarter and $2.19 for the fiscal year, with anticipated revenues of $12.7 million and $49.9 million, respectively.
Industry trends will also affect the stock’s performance. The Zacks Industry Rank places Banks – Northeast in the top 13% among over 250 Zacks-rated industries. Research indicates that the top half of Zacks-ranked industries outperform the bottom half by a factor exceeding 2 to 1.
Another player in the same industry, MainStreet Bank (MNSB), has yet to disclose its results for the quarter ending September 2024, with an expected reporting date on October 28. Analysts anticipate a quarterly loss of $0.04 per share, marking a year-over-year change of -105.2%. Over the last month, the consensus EPS estimate has been revised down by 33.3%, and revenues are projected to fall to $16.03 million—an 18% decrease compared to the previous year.
Is Investing in CB Financial Services, Inc. (CBFV) a Good Idea?
Before making an investment decision regarding CB Financial Services, Inc. (CBFV), investors may want to explore additional opportunities and check the best stocks to consider for the next month. Zacks Investment Research offers a complimentary report outlining the 7 best stocks to buy.
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CB Financial Services, Inc. (CBFV): Free Stock Analysis Report
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The views and opinions expressed herein are those of the author and do not necessarily represent those of Nasdaq, Inc.
