Analysts Are Updating Their First Interstate BancSystem, Inc. (NASDAQ:FIBK) Estimates After Its Annual Results

First Interstate BancSystem, Inc. (NASDAQ:FIBK) shareholders are probably feeling a little disappointed, since its shares fell 8.1% to US$26.43 in the week after its latest yearly results. Revenues came in 5.0% below expectations, at US$994m. Statutory earnings per share were relatively better off, with a per-share profit of US$2.48 being roughly in line with analyst estimates. 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.

Check out our latest analysis for First Interstate BancSystem

Taking into account the latest results, First Interstate BancSystem's seven analysts currently expect revenues in 2024 to be US$1.01b, approximately in line with the last 12 months. Statutory earnings per share are expected to decrease 8.1% to US$2.28 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$1.03b and earnings per share (EPS) of US$2.37 in 2024. The analysts are less bullish than they were before these results, given the reduced revenue forecasts and the small dip in earnings per share expectations.

The analysts made no major changes to their price target of US$30.00, suggesting the downgrades are not expected to have a long-term impact on First Interstate BancSystem's valuation. 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 First Interstate BancSystem, with the most bullish analyst valuing it at US$35.00 and the most bearish at US$25.00 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await First Interstate BancSystem shareholders.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the First Interstate BancSystem's past performance and to peers in the same industry. It's pretty clear that there is an expectation that First Interstate BancSystem's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 1.3% growth on an annualised basis. This is compared to a historical growth rate of 14% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 5.7% per year. Factoring in the forecast slowdown in growth, it seems obvious that First Interstate BancSystem is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for First Interstate BancSystem going out to 2026, and you can see them free on our platform here.

Even so, be aware that First Interstate BancSystem is showing 1 warning sign in our investment analysis , 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.