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Farmers National Banc Corp. Just Released Its Yearly Earnings: Here's What Analysts Think

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Simply Wall St
·4 min read
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Farmers National Banc Corp. (NASDAQ:FMNB) came out with its full-year results last week, and we wanted to see how the business is performing and what top analysts think of the company following this report. Farmers National Banc missed revenue estimates by 3.2%, with sales of US$109m, although statutory earnings per share (EPS) of US$1.28 beat expectations, coming in 2.4% ahead of analyst estimates. This is an important time for investors, as they can track a company's performance in its report, look at what top analysts are forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether analysts have changed their mind on Farmers National Banc after the latest results.

Check out our latest analysis for Farmers National Banc

NasdaqCM:FMNB Past and Future Earnings, February 1st 2020
NasdaqCM:FMNB Past and Future Earnings, February 1st 2020

Taking into account the latest results, the most recent consensus for Farmers National Banc from three analysts is for revenues of US$124.5m in 2020, which is a solid 15% increase on its sales over the past 12 months. Statutory earnings per share are expected to rise 3.9% to US$1.34. In the lead-up to this report, analysts had been modelling revenues of US$123.5m and earnings per share (EPS) of US$1.31 in 2020. So the consensus seems to have become somewhat more optimistic on Farmers National Banc's earnings potential following these results.

The consensus price target was unchanged at US$16.88, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. The consensus price target just an average of individual analyst targets, so - considering that the price target changed, it would be handy to see how wide the range of underlying estimates is. The most optimistic Farmers National Banc analyst has a price target of US$17.00 per share, while the most pessimistic values it at US$16.50. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or that analysts have a clear view on its prospects.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. Next year brings more of the same, according to analysts, with revenue forecast to grow 15%, in line with its 14% annual growth over the past five years. Compare this with the wider market, which analyst estimates (in aggregate) suggest will see revenues grow 5.0% next year. So although Farmers National Banc is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider market.

The Bottom Line

The biggest takeaway for us from these new estimates is that the consensus upgraded its earnings per share estimates, showing a clear improvement in sentiment around Farmers National Banc's earnings potential next year. Happily, there were no major changes to revenue forecasts, with analysts still expecting the business to grow faster than the wider market. The consensus price target held steady at US$16.88, with the latest estimates not enough to have an impact on analysts' estimated valuations.

Still, the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Farmers National Banc analysts - going out to 2021, and you can see them free on our platform here.

It might also be worth considering whether Farmers National Banc's debt load is appropriate, using our debt analysis tools on the Simply Wall St platform, here.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.