FS Bancorp, Inc. Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions

As you might know, FS Bancorp, Inc. (NASDAQ:FSBW) just kicked off its latest quarterly results with some very strong numbers. FS Bancorp beat earnings, with revenues hitting US$37m, ahead of expectations, and statutory earnings per share outperforming analyst reckonings by a solid 12%. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

View our latest analysis for FS Bancorp

Taking into account the latest results, the consensus forecast from FS Bancorp's three analysts is for revenues of US$150.1m in 2025. This reflects a satisfactory 7.6% improvement in revenue compared to the last 12 months. Statutory earnings per share are forecast to reduce 2.6% to US$4.65 in the same period. Before this earnings report, the analysts had been forecasting revenues of US$150.6m and earnings per share (EPS) of US$4.73 in 2025. 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.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at US$47.50. 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. There are some variant perceptions on FS Bancorp, with the most bullish analyst valuing it at US$50.00 and the most bearish at US$45.00 per share. This is a very narrow spread of estimates, implying either that FS Bancorp is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the FS Bancorp's past performance and to peers in the same industry. We would highlight that FS Bancorp's revenue growth is expected to slow, with the forecast 6.1% annualised growth rate until the end of 2025 being well below the historical 7.9% p.a. growth over the last five years. Compare this to the 676 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 6.6% per year. So it's pretty clear that, while FS Bancorp's revenue growth is expected to slow, it's expected to grow roughly in line with the 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. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at US$47.50, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on FS Bancorp. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for FS Bancorp going out to 2026, and you can see them free on our platform here..

You can also view our analysis of FS Bancorp's balance sheet, and whether we think FS Bancorp is carrying too much debt, for free on our platform here.

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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.