First Merchants Full Year 2023 Earnings: EPS Misses Expectations
First Merchants (NASDAQ:FRME) Full Year 2023 Results
Key Financial Results
Revenue: US$647.5m (up 5.9% from FY 2022).
Net income: US$221.9m (flat on FY 2022).
Profit margin: 34% (down from 36% in FY 2022). The decrease in margin was driven by higher expenses.
EPS: US$3.74.
FRME Banking Performance Indicators
Net interest margin (NIM): 3.35% (down from 3.41% in FY 2022).
Non-performing loans: 0.43% (up from 0.35% in FY 2022).
All figures shown in the chart above are for the trailing 12 month (TTM) period
First Merchants EPS Misses Expectations
Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 4.1%.
Looking ahead, revenue is forecast to grow 3.3% p.a. on average during the next 2 years, compared to a 5.8% growth forecast for the Banks industry in the US.
Performance of the American Banks industry.
The company's shares are down 4.0% from a week ago.
Risk Analysis
You should always think about risks. Case in point, we've spotted 2 warning signs for First Merchants you should be aware of, and 1 of them can't be ignored.
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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.
