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FB Financial Corporation Just Recorded A 52% EPS Beat: Here's What Analysts Are Forecasting Next

Simply Wall St

A week ago, FB Financial Corporation (NYSE:FBK) came out with a strong set of second-quarter numbers that could potentially lead to a re-rate of the stock. Statutory revenue and earnings both blasted past expectations, with revenue of US$137m beating expectations by 42% and earnings per share (EPS) reaching US$0.70, some 52% ahead of expectations. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Check out our latest analysis for FB Financial

earnings-and-revenue-growth
earnings-and-revenue-growth

Taking into account the latest results, the most recent consensus for FB Financial from five analysts is for revenues of US$505.5m in 2020 which, if met, would be a substantial 39% increase on its sales over the past 12 months. Statutory earnings per share are forecast to dive 47% to US$1.16 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$448.3m and earnings per share (EPS) of US$0.94 in 2020. There has definitely been an improvement in perception after these results, with the analysts noticeably increasing both their earnings and revenue estimates.

Althoughthe analysts have upgraded their earnings estimates, there was no change to the consensus price target of US$27.88, 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. The most optimistic FB Financial analyst has a price target of US$30.00 per share, while the most pessimistic values it at US$24.50. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the FB Financial's past performance and to peers in the same industry. It's clear from the latest estimates that FB Financial's rate of growth is expected to accelerate meaningfully, with the forecast 39% revenue growth noticeably faster than its historical growth of 14%p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 2.0% next year. Factoring in the forecast acceleration in revenue, it's pretty clear that FB Financial is expected to grow much faster than its industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards FB Financial following these results. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple FB Financial analysts - going out to 2022, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 2 warning signs for FB Financial that you should be aware of.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.