First National Corp. Reports Quarterly Earnings Below Expectations
Earnings Miss and Revenue Growth Highlight Recent Performance
First National Corp. (FXNC) reported quarterly earnings of $0.39 per share, falling short of the Zacks Consensus Estimate of $0.49 per share. This reflects a decline from earnings of $0.50 per share a year earlier, with all figures adjusted for non-recurring items.
The earnings surprise this quarter stands at -20.41%. Just a quarter prior, the company was expected to earn $0.44 per share but outperformed expectations with earnings of $0.48, marking a surprise of 9.09%.
In the past four quarters, First National has exceeded consensus earnings per share (EPS) estimates twice.
Part of the Zacks Banks – Southeast industry, First National achieved revenues of $14.95 million for the quarter ending September 2024, surpassing the Zacks consensus estimate by 3.83%. This is an increase from revenues of $13.74 million during the same quarter last year. The company has consistently beaten revenue expectations, achieving this feat four times in the past year.
Future stock performance will largely depend on management’s insights during the earnings call, particularly in light of the recently released figures and forward-looking earnings expectations.
Since the start of the year, First National shares have declined by about 2.6%, while the S&P 500 has risen by 19.6%.
Future Prospects for First National
Though First National has struggled compared to the broader market this year, investors are keen to understand what lies ahead for the stock.
While answers may be complex, a valuable approach is to assess the company’s earnings outlook. This encompasses current consensus earnings expectations both for upcoming quarters and how these expectations have shifted recently.
Research indicates a significant link between short-term stock performance and trends in earnings estimate revisions. Investors can monitor these revisions themselves or utilize a reliable tool like the Zacks Rank, known for effectively capturing earnings estimate changes.
Following the latest earnings release, the trend for estimate revisions at First National has been mixed. The current situation offers a Zacks Rank of #3 (Hold), suggesting that the stock is projected to perform in line with the market shortly. A complete list of today’s Zacks #1 Rank (Strong Buy) stocks is accessible here.
It will be intriguing to observe how estimates for upcoming quarters and the current fiscal year change moving forward. Presently, the consensus EPS estimate stands at $0.49 on $14.5 million in revenues for the next quarter, and $1.88 on $57.9 million in revenues for the fiscal year.
Investors should also consider that industry trends can greatly influence stock performance. The Zacks Industry Rank places Banks – Southeast in the top 39% of over 250 industries. Research shows that the top 50% of Zacks-ranked industries outperform the bottom 50% by a ratio exceeding 2 to 1.
NCR Atleos (NATL), another player in the same sector, has yet to report its results for the quarter ending September 2024. Their report is anticipated on November 12.
The provider of ATM services is projected to report quarterly earnings of $0.78 per share, reflecting a remarkable year-over-year increase of +195.1%. Notably, the consensus EPS estimate has remained stable over the last 30 days.
NCR Atleos’ revenues are anticipated to reach $1.06 billion, which is a slight decline of 0.7% from the same quarter last year.
Should You Consider an Investment in First National Corp. (FXNC)?
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First National Corp. (FXNC): Free Stock Analysis Report
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