First Financial Bankshares, Inc. (NASDAQ:FFIN) just released its latest third-quarter results and things are looking bullish. Results were good overall, with revenues beating analyst predictions by 4.4% to hit US$131m. Statutory earnings per share (EPS) came in at US$0.37, some 8.2% above whatthe analysts had expected. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
Taking into account the latest results, the consensus forecast from First Financial Bankshares' five analysts is for revenues of US$477.7m in 2021, which would reflect a notable 9.1% improvement in sales compared to the last 12 months. Statutory per share are forecast to be US$1.30, approximately in line with the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of US$475.2m and earnings per share (EPS) of US$1.24 in 2021. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.
The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 13% to US$29.20. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic First Financial Bankshares analyst has a price target of US$33.00 per share, while the most pessimistic values it at US$25.00. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the First Financial Bankshares' past performance and to peers in the same industry. We can infer from the latest estimates that forecasts expect a continuation of First Financial Bankshares'historical trends, as next year's 9.1% revenue growth is roughly in line with 9.0% annual revenue 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 1.4% per year. So it's pretty clear that First Financial Bankshares is forecast to grow substantially faster than its industry.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around First Financial Bankshares' earnings potential next year. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple First Financial Bankshares analysts - going out to 2022, and you can see them free on our platform here.
It is also worth noting that we have found 2 warning signs for First Financial Bankshares (1 is a bit concerning!) that you need to take into consideration.
If you’re looking to trade First Financial Bankshares, open an account with the lowest-cost* platform trusted by professionals, Interactive Brokers. Their clients from over 200 countries and territories trade stocks, options, futures, forex, bonds and funds worldwide from a single integrated account.
This article by Simply Wall St is general in nature. 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.
*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email firstname.lastname@example.org.