Northrim BanCorp Surprises with Strong Earnings Performance
Earnings and Revenue Information
Northrim BanCorp (NRIM) reported quarterly earnings of $1.57 per share, exceeding the Zacks Consensus Estimate of $1.53 per share. This figure is up from $1.48 per share one year ago. The results have been adjusted for non-recurring items.
This quarterly performance reflects an earnings surprise of 2.61%. Last quarter, the market anticipated earnings of $1.31 per share, but the company delivered $1.62, resulting in a surprising 23.66% increase.
Track Record of Earnings Surprises
Over the past four quarters, Northrim BanCorp has exceeded consensus EPS estimates three times. Operating within the Zacks Banks – West industry, the company reported revenues of $40.43 million for the quarter ending September 2024, surpassing the Zacks Consensus Estimate by 9.42%. This is higher than the $34.35 million in revenue from the same period last year. The consistency in surpassing revenue expectations has also been evident, as the company has topped consensus revenue estimates three times within the last four quarters.
Looking Ahead
The immediate pricing movement of the stock, following these results and expectations for future earnings, will largely rely on management’s discussion during the earnings call.
Since the start of the year, Northrim shares have gained approximately 21.3%, compared to the S&P 500’s increase of 22.7%.
Future Outlook for Northrim
Investors are now considering: what lies ahead for Northrim’s stock? While there are no straightforward answers, a key indicator is the company’s earnings outlook. This encompasses both current earnings expectations for upcoming quarters and any recent changes in those expectations.
Research indicates a strong connection between short-term stock performance and earnings estimate revisions. Investors can monitor these revisions independently or rely on tools like the Zacks Rank, which has proven effective in predicting market movements based on earnings estimate changes.
Before this earnings release, Northrim’s estimate revisions trend was mixed. The present status gives it a Zacks Rank #3 (Hold). This suggests that the stock is likely to perform in line with the market shortly. Following the recent earnings report, the consensus EPS estimate for the upcoming quarter stands at $1.23 on projected revenues of $35.43 million and $5.83 on revenues of $143.2 million for the current fiscal year.
Industry Performance Impact
It’s worth noting that the broader industry outlook can significantly affect stock performance. Currently, the Zacks Industry Rank for Banks – West places it in the bottom 42% of over 250 industries. Historical trends show that stocks from the top 50% of Zacks-ranked industries tend to outperform those in the lower half significantly.
Columbia Banking’s Upcoming Report
Columbia Banking (COLB), a peer in the same sector, will soon release its quarterly results for the period ending September 2024. This report is scheduled for October 24.
Columbia Banking is projected to announce quarterly earnings of $0.61 per share, reflecting a year-over-year decline of 22.8%. The EPS estimate has adjusted upward by 1% in the past month. Expected revenues for Columbia are $478.8 million, marking an 8.8% drop from the same quarter last year.
Should You Consider Investing in Northrim BanCorp Inc (NRIM)?
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The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.