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Regional banking company First Citizens BancShares (NASDAQGS:FCNC.A) will be announcing earnings results this Friday morning. Here’s what investors should know.
First Citizens BancShares beat analysts’ revenue expectations by 1.7% last quarter, reporting revenues of $2.25 billion, flat year on year. It was a strong quarter for the company, with a decent beat of analysts’ revenue estimates and a narrow beat of analysts’ net interest income estimates.
This quarter, analysts are expecting First Citizens BancShares’s revenue to be flat year on year at $2.22 billion, improving from the 6% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $43.79 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. First Citizens BancShares has missed Wall Street’s revenue estimates three times over the last two years.
Looking at First Citizens BancShares’s peers in the regional banks segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Live Oak Bancshares delivered year-on-year revenue growth of 29.9%, beating analysts’ expectations by 14.9%, and ServisFirst Bancshares reported revenues up 20.7%, topping estimates by 5%. Live Oak Bancshares traded down 85% following the results.
There has been positive sentiment among investors in the regional banks segment, with share prices up 5% on average over the last month. First Citizens BancShares’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $2,335 (compared to the current share price of $2,189).