First Commonwealth Financial (FCF) first quarter earnings and revenue miss estimates

FPremier Commonwealth Financial (FCF) posted quarterly earnings of $0.29 per share, missing Zacks’ consensus estimate of $0.30 per share. That compares to earnings of $0.41 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents a profit surprise of -3.33%. A quarter ago, this financial holding company was expected to post a profit of $0.33 per share when it actually produced a profit of $0.37, delivering a surprise of 12.12%.

In the past four quarters, the company has exceeded consensus EPS estimates three times.

First Commonwealth Financial, which is industry-owned Zacks Banks – Northeast, posted revenue of $92.15 million for the quarter ended March 2022, missing Zacks’ consensus estimate by 2.34%. That compares to revenues of $96.8 million a year ago. The company has exceeded consensus revenue estimates only once in the past four quarters.

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.

Shares of First Commonwealth Financial have lost around 10.4% since the start of the year against a decline of -9.9% for the S&P 500.

What’s next for First Commonwealth Financial?

Although First Commonwealth Financial has underperformed 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 the revisions of the estimates for First Commonwealth Financial: favorable. While the magnitude and direction of estimate revisions may change following the release of the company’s earnings report, the current situation results in a Zacks No. 2 (buy) ranking for the stock. Thus, stocks are expected to outperform 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 $0.33 on $97.09 million in revenue for the upcoming quarter and $1.31 on $394.64 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, Evans Bancorp (EVBN), has not yet released its results for the quarter ending March 2022. The results are expected to be released on April 27.

This bank is expected to post quarterly earnings of $0.82 per share in its next report, representing a year-over-year change of -7.9%. The consensus EPS estimate for the quarter has been revised down 1.2% in the last 30 days from the current level.

Evans Bancorp’s revenue is expected to be $21.51 million, up 1.7% from the year-ago quarter.

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