Earnings Miss: Flushing Financial Corporation Missed EPS By 9.4% And Analysts Are Revising Their Forecasts

The analysts might have been a bit too bullish on Flushing Financial Corporation (NASDAQ:FFIC), given that the company fell short of expectations when it released its quarterly results last week. Flushing Financial missed analyst forecasts, with revenues of US$45m and statutory earnings per share (EPS) of US$0.12, falling short by 5.8% and 9.4% respectively. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

View our latest analysis for Flushing Financial

Following last week's earnings report, Flushing Financial's five analysts are forecasting 2024 revenues to be US$191.4m, approximately in line with the last 12 months. Statutory earnings per share are forecast to dive 28% to US$0.70 in the same period. Before this earnings report, the analysts had been forecasting revenues of US$195.4m and earnings per share (EPS) of US$0.80 in 2024. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a real cut to earnings per share estimates.

The consensus price target fell 7.9% to US$14.63, with the weaker earnings outlook clearly leading valuation estimates. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Flushing Financial, with the most bullish analyst valuing it at US$16.00 and the most bearish at US$13.00 per share. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

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. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 0.04% by the end of 2024. This indicates a significant reduction from annual growth of 6.0% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 6.0% annually for the foreseeable future. It's pretty clear that Flushing Financial's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Flushing Financial. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Flushing Financial going out to 2025, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 3 warning signs for Flushing Financial you should know about.

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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.