First Savings Financial Reports Mixed Earnings Amid Market Growth
Quarterly Earnings Fall Short of Expectations
First Savings Financial (FSFG) reported quarterly earnings of $0.53 per share, falling short of the Zacks Consensus Estimate of $0.58 per share. This is an increase from earnings of $0.41 per share a year ago, after adjusting for non-recurring items.
The earnings surprise of -8.62% contrasts significantly with the previous quarter when the company exceeded expectations, posting earnings of $0.52 per share instead of the expected $0.41, resulting in a positive surprise of 26.83%.
Revenue Declines and Industry Context
For the quarter ending September 2024, First Savings Financial generated revenues of $17.92 million, which is below the Zacks Consensus Estimate by 5.69%. This figure also marks a decline from last year’s revenues of $20.98 million. In the last four quarters, the company has met or surpassed consensus revenue estimates only twice.
The stock’s immediate price movement will likely rely on insights from management during the upcoming earnings call, especially as they discuss future prospects.
Notably, First Savings Financial’s shares have appreciated approximately 45% since the start of the year, significantly outpacing the S&P 500’s gain of 21.5%.
What Lies Ahead for First Savings Financial?
Although First Savings Financial has shown strong performance this year, investors are eager to understand the stock’s future trajectory. The company’s earnings outlook could provide some answers. This outlook includes current consensus earnings expectations and any recent changes to them.
Historical data suggests a strong link between short-term stock movements and earnings estimate revisions. Investors can monitor these revisions themselves or utilize the Zacks Rank system, which is known for effectively leveraging earnings estimate trends.
Currently, the trend for First Savings Financial’s earnings estimate revisions is mixed, resulting in a Zacks Rank of #3 (Hold). This suggests that the stock is expected to perform in line with the broader market in the near term.
The current consensus EPS estimate stands at $0.53 with projected revenues of $18.8 million for the upcoming quarter, and $2.20 with revenues of $77.7 million for the current fiscal year.
It’s important to remember that the industry’s outlook can significantly affect stock performance. The Financial – Savings and Loan sector currently ranks in the top 23% of over 250 Zacks industries, indicating a positive environment for growth, as top-ranking industries tend to outperform lower-ranked ones substantially.
Upcoming Reports in the Sector
Another company in the Zacks Finance sector, Main Street Capital (MAIN), has yet to report its earnings for the quarter ending September 2024. Results are anticipated on November 7. Analysts project quarterly earnings of $1.02 per share, reflecting a year-over-year increase of 3%, with expected revenues of $137.57 million, up 11.6% from last year.
Is First Savings Financial a Good Investment?
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
