Analysts Have Made A Financial Statement On First Business Financial Services, Inc.'s (NASDAQ:FBIZ) Third-Quarter Report

Investors in First Business Financial Services, Inc. (NASDAQ:FBIZ) had a good week, as its shares rose 3.9% to close at US$30.61 following the release of its quarterly results. Results were roughly in line with estimates, with revenues of US$37m and statutory earnings per share of US$1.17. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

View our latest analysis for First Business Financial Services

Following the latest results, First Business Financial Services' four analysts are now forecasting revenues of US$158.1m in 2024. This would be a notable 17% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to increase 8.3% to US$4.64. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$152.8m and earnings per share (EPS) of US$4.60 in 2024. There doesn't appear to have been a major change in sentiment following the results, other than the small increase to revenue estimates.

Even though revenue forecasts increased, there was no change to the consensus price target of US$38.25, suggesting the analysts are focused on earnings as the driver of value creation. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic First Business Financial Services analyst has a price target of US$40.00 per share, while the most pessimistic values it at US$33.00. This is a very narrow spread of estimates, implying either that First Business Financial Services is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 13% growth on an annualised basis. That is in line with its 13% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 4.4% per year. So although First Business Financial Services is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. The consensus price target held steady at US$38.25, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for First Business Financial Services going out to 2025, and you can see them free on our platform here..

Before you take the next step you should know about the 1 warning sign for First Business Financial Services that we have uncovered.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.