Yahoo Finance US$18.50 - That's What Analysts Think First Commonwealth Financial Corporation (NYSE:FCF) Is Worth After These Results
As you might know, First Commonwealth Financial Corporation (NYSE:FCF) recently reported its full-year numbers. First Commonwealth Financial reported US$386m in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of US$1.44 beat expectations, being 2.7% higher than what the analysts expected. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
See our latest analysis for First Commonwealth Financial
Taking into account the latest results, First Commonwealth Financial's six analysts currently expect revenues in 2022 to be US$390.2m, approximately in line with the last 12 months. Statutory earnings per share are expected to sink 13% to US$1.28 in the same period. In the lead-up to this report, the analysts had been modelling revenues of US$391.2m and earnings per share (EPS) of US$1.27 in 2022. 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.
With the analysts reconfirming their revenue and earnings forecasts, it's surprising to see that the price target rose 7.8% to US$18.50. It looks as though they previously had some doubts over whether the business would live up to their expectations. 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 Commonwealth Financial analyst has a price target of US$20.00 per share, while the most pessimistic values it at US$15.00. 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.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that First Commonwealth Financial's revenue growth is expected to slow, with the forecast 1.0% annualised growth rate until the end of 2022 being well below the historical 5.7% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 4.9% annually. Factoring in the forecast slowdown in growth, it seems obvious that First Commonwealth Financial is also expected to grow slower than other industry participants.
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. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting sales are tracking in line with expectations - although our data does suggest that First Commonwealth Financial's revenues are expected to perform worse than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for First Commonwealth Financial going out to 2023, and you can see them free on our platform here.
We don't want to rain on the parade too much, but we did also find 1 warning sign for First Commonwealth Financial that you need to be mindful of.
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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.
