Compared to Estimates, First Merchants (FRME) Q2 Earnings: A Look at Key Metrics
For the quarter ended June 2023, First Merchants (FRME) reported revenue of $164.15 million, up 4.6% over the same period last year. EPS came in at $1.02, compared to $1.01 in the year-ago quarter.
The reported revenue represents a surprise of -4.45% over the Zacks Consensus Estimate of $171.8 million. With the consensus EPS estimate being $1.04, the EPS surprise was -1.92%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how First Merchants performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Efficiency Ratio: 52.21% compared to the 54.1% average estimate based on three analysts.
Net Interest Margin: 3.39% compared to the 3.48% average estimate based on three analysts.
Net Charge-off (% of Average Loans): 0.06% versus the two-analyst average estimate of 0.1%.
Average earning assets: $16.97 billion versus the two-analyst average estimate of $17.02 billion.
Total Non-Interest Income: $26.32 million versus the three-analyst average estimate of $27.15 million.
Net gains and fees on sales of loans: $3.63 million compared to the $2.67 million average estimate based on three analysts.
Other income: $0.82 million versus $0.82 million estimated by two analysts on average.
Other customer fees: $0.74 million compared to the $0.51 million average estimate based on two analysts.
Net Interest Income (FTE): $143.69 million versus the two-analyst average estimate of $147.44 million.
Fiduciary and wealth management fees: $7.40 million versus the two-analyst average estimate of $7.97 million.
Service charges on deposit accounts: $7.81 million compared to the $7.42 million average estimate based on two analysts.
Derivative hedge fees: $0.67 million versus the two-analyst average estimate of $1.53 million.
View all Key Company Metrics for First Merchants here>>>
Shares of First Merchants have returned +15.7% over the past month versus the Zacks S&P 500 composite's +4.9% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.
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First Merchants Corporation (FRME) : Free Stock Analysis Report
