First Financial Bankshares, Inc. (NASDAQ:FFIN) Just Released Its Third-Quarter Earnings: Here's What Analysts Think

Investors in First Financial Bankshares, Inc. (NASDAQ:FFIN) had a good week, as its shares rose 2.3% to close at US$38.40 following the release of its third-quarter results. Results look mixed - while revenue fell marginally short of analyst estimates at US$135m, statutory earnings were in line with expectations, at US$0.39 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

See our latest analysis for First Financial Bankshares

Taking into account the latest results, the consensus forecast from First Financial Bankshares' five analysts is for revenues of US$598.0m in 2025. This reflects a decent 17% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to grow 13% to US$1.65. Before this earnings report, the analysts had been forecasting revenues of US$592.7m and earnings per share (EPS) of US$1.62 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

The analysts reconfirmed their price target of US$37.90, showing that the business is executing well and in line with expectations. 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. Currently, the most bullish analyst values First Financial Bankshares at US$40.00 per share, while the most bearish prices it at US$34.50. This is a very narrow spread of estimates, implying either that First Financial Bankshares 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. It's clear from the latest estimates that First Financial Bankshares' rate of growth is expected to accelerate meaningfully, with the forecast 14% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 4.2% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 6.6% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect First Financial Bankshares to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at US$37.90, 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 Financial Bankshares going out to 2026, and you can see them free on our platform here..

You can also see our analysis of First Financial Bankshares' Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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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.