South Plains Financial Reports Earnings Beat, But Revenue Falls Short
South Plains Financial (SPFI) posted quarterly earnings of $0.66 per share, exceeding the Zacks Consensus Estimate of $0.65 per share. However, this marks a decline from earnings of $0.78 per share a year earlier. These figures are adjusted for one-time items.
This report reflects an earnings surprise of 1.54%. Last quarter, the company was projected to deliver earnings of $0.57 per share, but it achieved $0.66, resulting in a notable surprise of 15.79%.
In the past four quarters, South Plains Financial has surpassed consensus EPS estimates three times.
For the quarter ending September 2024, South Plains Financial recorded revenues of $47.93 million, missing the Zacks Consensus Estimate by 1.99%. This is a slight decrease from revenues of $47.97 million during the same quarter last year. The company has exceeded consensus revenue estimates twice in the last four quarters.
The immediate future of the stock’s price movement, informed by the recently reported numbers and management’s insights during the earnings call, will be closely watched by investors.
Since the start of this year, South Plains Financial shares have risen approximately 18.6%. In comparison, the S&P 500 has increased by 22.7%.
What Lies Ahead for South Plains Financial?
With South Plains Financial’s performance trailing behind the market this year, investors are left wondering about the stock’s trajectory.
While there are no straightforward answers, examining the company’s earnings forecast can provide valuable insights. This includes current consensus earnings expectations for the upcoming quarters and any recent adjustments to those estimates.
Research indicates a significant link between stock price movements and trends in earnings estimate revisions. Investors can monitor these revisions independently or utilize established tools like the Zacks Rank, which has a reliable record of predicting stock performance based on earnings estimate changes.
Leading up to this earnings report, the revision trend for South Plains Financial has been positive. Although this trend could shift post-report, the current data has earned the stock a Zacks Rank of #1 (Strong Buy), suggesting it may outperform the market shortly. A complete list of today’s Zacks #1 Rank stocks is available.
Observers will be keen to see how estimates for future quarters and the current fiscal year evolve. The consensus EPS estimate stands at $0.64, with projected revenues of $48.85 million for the next quarter and $2.56 per share on $193 million in revenues for the current fiscal year.
It’s essential to recognize that industry outlooks can significantly influence stock performance. Currently, the Banks – Southeast sector occupies the bottom 33% of over 250 Zacks industries. Historical data shows that stocks in the top 50% of the Zacks Industry Rank outperform those in the bottom half by a ratio of over 2 to 1.
Another player in the same industry, National Bankshares (NKSH), has not reported its results for the quarter ending September 2024 yet. This holding company for the National Bank of Blacksburg is expected to report quarterly earnings of $0.52 per share, unchanged from the same quarter last year. The revenue forecast is $11.64 million, reflecting an 8.2% increase from the previous year.
Is South Plains Financial, Inc. (SPFI) a Good Investment?
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South Plains Financial, Inc. (SPFI): Free Stock Analysis Report
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