HomeMost PopularNorthrim BanCorp (NRIM) Exceeds Q3 Earnings and Revenue Expectations

Northrim BanCorp (NRIM) Exceeds Q3 Earnings and Revenue Expectations

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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)?

If you are contemplating an investment in Northrim BanCorp Inc (NRIM), and want insights on other potential stocks for the next 30 days, consider checking out Zacks Investment Research for a complimentary report on the 7 best stocks to buy.

Zacks Investment Research has been delivering independent research and investor tools 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% (covering returns from January 1, 1988, to May 6, 2024).

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Northrim BanCorp Inc (NRIM): Free Stock Analysis Report

Columbia Banking System, Inc. (COLB): Free Stock Analysis Report

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

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