It's been a good week for First Business Financial Services, Inc. (NASDAQ:FBIZ) shareholders, because the company has just released its latest quarterly results, and the shares gained 3.9% to US$30.61. Results were roughly in line with estimates, with revenues of US$37m and statutory earnings per share of US$1.17. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. 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 First Business Financial Services
Taking into account the latest results, the current consensus from First Business Financial Services' four analysts is for revenues of US$158.1m in 2024. This would reflect a notable 17% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to rise 8.3% to US$4.64. Before this earnings report, the analysts had been forecasting revenues of US$152.8m and earnings per share (EPS) of US$4.60 in 2024. There doesn't appear to have been a major change in sentiment following the results, other than the small lift in revenue estimates.
It may not be a surprise to see thatthe analysts have reconfirmed their price target of US$38.25, implying that the uplift in revenue is not expected to greatly contribute to First Business Financial Services's valuation in the near term. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic First Business Financial Services analyst has a price target of US$40.00 per share, while the most pessimistic values it at US$33.00. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the First Business Financial Services' past performance and to peers in the same industry. The period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 13% growth on an annualised basis. That is in line with its 13% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 4.4% annually. So it's pretty clear that First Business Financial Services is forecast to grow substantially faster than its industry.
The Bottom Line
The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. 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.
With that in mind, we wouldn't be too quick to come to a conclusion on First Business Financial Services. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple First Business Financial Services analysts - going out to 2025, and you can see them free on our platform here.
It is also worth noting that we have found 1 warning sign for First Business Financial Services that you need to take into consideration.
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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.
