The First of Long Island Corporation (NASDAQ:FLIC) Analysts Just Cut Their EPS Forecasts Substantially
The latest analyst coverage could presage a bad day for The First of Long Island Corporation (NASDAQ:FLIC), with the analysts making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. Revenue and earnings per share (EPS) forecasts were both revised downwards, with the analysts seeing grey clouds on the horizon.
Following the latest downgrade, the two analysts covering First of Long Island provided consensus estimates of US$101m revenue in 2023, which would reflect a considerable 15% decline on its sales over the past 12 months. Statutory earnings per share are supposed to tumble 33% to US$1.23 in the same period. Before this latest update, the analysts had been forecasting revenues of US$116m and earnings per share (EPS) of US$1.78 in 2023. Indeed, we can see that the analysts are a lot more bearish about First of Long Island's prospects, administering a substantial drop in revenue estimates and slashing their EPS estimates to boot.
View our latest analysis for First of Long Island
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that sales are expected to reverse, with a forecast 19% annualised revenue decline to the end of 2023. That is a notable change from historical growth of 4.0% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 2.9% annually for the foreseeable future. It's pretty clear that First of Long Island's revenues are expected to perform substantially worse than the wider industry.
The Bottom Line
The biggest issue in the new estimates is that analysts have reduced their earnings per share estimates, suggesting business headwinds lay ahead for First of Long Island. Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales slower than the wider market. Given the serious cut to this year's outlook, it's clear that analysts have turned more bearish on First of Long Island, and we wouldn't blame shareholders for feeling a little more cautious themselves.
Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. At least one analyst has provided forecasts out to 2024, which can be seen for free on our platform here.
Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies 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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