Broker Revenue Forecasts For First Mid Bancshares, Inc. (NASDAQ:FMBH) Are Surging Higher
First Mid Bancshares, Inc. (NASDAQ:FMBH) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's statutory forecasts. The revenue forecast for this year has experienced a facelift, with analysts now much more optimistic on its sales pipeline. Investor sentiment seems to be improving too, with the share price up 6.7% to US$30.52 over the past 7 days. Could this big upgrade push the stock even higher?
Following the upgrade, the consensus from five analysts covering First Mid Bancshares is for revenues of US$217m in 2023, implying a definite 15% decline in sales compared to the last 12 months. Statutory earnings per share are supposed to decline 14% to US$3.11 in the same period. Previously, the analysts had been modelling revenues of US$189m and earnings per share (EPS) of US$2.96 in 2023. The forecasts seem more optimistic now, with a substantial gain in revenue and a small increase to earnings per share estimates.
See our latest analysis for First Mid Bancshares
Although the analysts have upgraded their earnings estimates, there was no change to the consensus price target of US$33.58, suggesting that the forecast performance does not have a long term impact on the company's valuation. 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 Mid Bancshares at US$35.00 per share, while the most bearish prices it at US$31.00. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or that the analysts have a clear view on its prospects.
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. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 28% by the end of 2023. This indicates a significant reduction from annual growth of 14% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 4.4% per year. It's pretty clear that First Mid Bancshares' revenues are expected to perform substantially worse than the wider industry.
The Bottom Line
The most important thing to take away from this upgrade is that analysts upgraded their earnings per share estimates for this year, expecting improving business conditions. Fortunately, they also upgraded their revenue estimates, and are forecasting revenues to grow slower than the wider market. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at First Mid Bancshares.
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 Mid Bancshares analysts - going out to 2024, and you can see them free on our platform here.
Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are upgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.
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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.
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