SmarFinancial (SMBK) First Quarter Earnings Estimates
SmarFinancial (SMBK) posted quarterly earnings of $0.51 per share, in line with Zacks’ consensus estimate. That compares to earnings of $0.65 per share a year ago. These figures are adjusted for non-recurring items.
A quarter ago, this bank holding company was expected to post earnings of $0.48 per share when it actually produced earnings of $0.52, delivering a surprise 8.33 %.
In the past four quarters, the company has exceeded consensus EPS estimates three times.
The sustainability of the immediate stock price movement based on recently released numbers and future earnings forecasts will primarily depend on management’s comments on the earnings call.
SmarFinancial shares have lost around 8.6% since the start of the year compared to a decline of -10.4% for the S&P 500.
What’s next for SmarFinancial?
While SmarFinancial has outperformed the market so far this year, the question on investors’ minds is: what’s next for the stock?
There is no easy answer to this key question, but a reliable measure that can help investors answer it is the company’s earnings outlook. This includes not only current consensus earnings expectations for the upcoming quarter(s), but also how those expectations have changed recently.
Empirical research shows a strong correlation between short-term stock movements and trends in earnings estimate revisions. Investors can track these revisions on their own or rely on a proven scoring tool like Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Before this publication of the results, the trend of estimate revisions for SmarFinancial: mixed. While the magnitude and direction of estimate revisions may change following the release of the company’s earnings report, the current situation translates into a No. 3 (hold) Zacks ranking for the stock. Thus, the shares should move in line with the market in the near future. You can see the full list of today’s Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how the estimates for the next few quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.54 on $38.05 million in revenue for the upcoming quarter and $2.30 on $155.41 million in revenue for the current fiscal year.
Investors should be aware that the outlook for the sector can also have a significant impact on stock performance. In terms of Zacks industry rankings, Banks – Northeast is currently in the top 12% of Zacks 250+ industries. Our research shows that the top 50% of industries ranked by Zacks outperform the bottom 50% by a factor of more than 2 to 1.
Another stock in the same sector, Arrow Financial (AROW), has yet to report results for the quarter ending March 2022.
This bank holding company is expected to post quarterly earnings of $0.71 per share in its next report, representing a year-over-year change of -14.5%. The consensus EPS estimate for the quarter remained unchanged for the past 30 days.
Arrow Financial’s revenue is expected to be $34.84 million, up 0.2% from the year-ago quarter.
Just Released: Zacks’ 7 Best Stocks For Today
Experts have pulled 7 stocks from the Zacks #1 220 Strong Buys list that have beaten the market more than 2 times with an astonishing average gain of +25.4% per year.
These 7s were selected because of their superior potential for immediate breakout.
See these time-sensitive tickers now >>
Click to get this free report
SmartFinancial, Inc. (SMBK): Free Stock Analysis Report
Arrow Financial Corporation (AROW): Free Stock Analysis Report
To read this article on Zacks.com, click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.