US$20.00 - That's What Analysts Think The First of Long Island Corporation (NASDAQ:FLIC) Is Worth After These Results

Last week, you might have seen that The First of Long Island Corporation (NASDAQ:FLIC) released its annual result to the market. The early response was not positive, with shares down 4.3% to US$17.05 in the past week. Results were roughly in line with estimates, with revenues of US$113m and statutory earnings per share of US$1.72. 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. 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 of Long Island

Following last week's earnings report, First of Long Island's five analysts are forecasting 2021 revenues to be US$114.2m, approximately in line with the last 12 months. Statutory earnings per share are forecast to reduce 6.2% to US$1.62 in the same period. Before this earnings report, the analysts had been forecasting revenues of US$114.2m and earnings per share (EPS) of US$1.62 in 2021. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

The consensus price target rose 9.1% to US$20.00despite there being no meaningful change to earnings estimates. It could be that the analystsare reflecting the predictability of First of Long Island's earnings by assigning a price premium. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values First of Long Island at US$22.00 per share, while the most bearish prices it at US$17.00. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that First of Long Island's revenue growth is expected to slow, with forecast 1.0% increase next year well below the historical 6.0%p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 6.6% next year. Factoring in the forecast slowdown in growth, it seems obvious that First of Long Island is also expected to grow slower than other industry participants.

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, the analysts also reconfirmed their revenue estimates, suggesting sales are tracking in line with expectations - although our data does suggest that First of Long Island's revenues are expected to perform worse 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 in mind, we wouldn't be too quick to come to a conclusion on First of Long Island. Long-term earnings power is much more important than next year's profits. We have forecasts for First of Long Island going out to 2022, and you can see them free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 2 warning signs with First of Long Island (at least 1 which is a bit concerning) , and understanding these should be part of your investment process.

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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.
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