It’s shaping up to be a tough period for Financial Institutions, Inc. (NASDAQ:FISI), which a week ago released some disappointing third-quarter results that could have a notable impact on how the market views the stock. Financial Institutions missed analyst forecasts, with revenues of US$65m and statutory earnings per share (EPS) of US$0.99, falling short by 2.7% and 5.7% respectively. 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. We’ve gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
Taking into account the latest results, the consensus forecast from Financial Institutions’ dual analysts is for revenues of US$271.9m in 2027. This reflects a solid 12% improvement in revenue compared to the last 12 months. Per-share earnings are expected to increase 5.1% to US$4.33. In the lead-up to this report, the analysts had been modelling revenues of US$273.2m and earnings per share (EPS) of US$4.30 in 2027. The consensus analysts don’t seem to have seen anything in these results that would have changed their view on the business, given there’s been no major change to their estimates.
Check out our latest analysis for Financial Institutions
There were no changes to revenue or earnings estimates or the price target of US$44.50, suggesting that the company has met expectations in its recent result.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. One thing stands out from these estimates, which is that Financial Institutions is forecast to grow faster in the future than it has in the past, with revenues expected to display 9.3% annualised growth until the end of 2027. If achieved, this would be a much better result than the 1.0% annual decline over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 7.7% per year. So it looks like Financial Institutions is expected to grow at about the same rate as the wider 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. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target held steady at US$44.50, with the latest estimates not enough to have an impact on their price targets.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At least one analyst has provided forecasts out to 2028, which can be seen for free on our platform here.
It might also be worth considering whether Financial Institutions’ debt load is appropriate, using our debt analysis tools on the Simply Wall St platform, here.
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