Franklin Financial Network (FSB) Q4 2019 Earnings Prep

in EARNINGS/INVESTING IDEAS by

Franklin Financial Network, Inc. (NYSE:FSB) is scheduled to report Q4 earnings results on January 22, 2020 after the stock market closes for trading.

The company is expected to report earnings of $0.67/share on revenue of $32.906 million. The consensus earnings per share (EPS) of $0.67/share is based on a poll of 4 analysts and represents a growth of 9.0% over the same quarter last year when the company reported earnings of $0.61/share.

The revenue forecast of $32.906 million based on a poll of 2 analysts implies a year-over-year (YoY) growth of 24.0%. Last year the company reported $26.537 million in revenue for the quarter.

Expected to report EPS growth of $0.06/share for Q4, 2019
Metric Expected Prior Year YoY Change
Revenue $32.91 $26.54 24.0%
EPS $0.67 $0.61 9.0%

Earnings Call Trends

Historically, management has exceeded analyst expectations 5 out of the last 8 tracked quarters, missed 2 quarters, and met expectations 1 quarter.

What are your expectations from Franklin Financial Network for earnings this quarter? Let us know in the comments!

Analyst Expected vs. Reported EPS
Quarter Expected Reported Surprise Result
Q3, 2019 $0.65 $0.72 10.8% Beat
Q2, 2019 $0.31 $0.34 9.7% Beat
Q1, 2019 $0.43 $0.41 -4.7% Missed
Q4, 2018 $0.61 $0.61 0.0% Meet
Q3, 2018 $0.68 $0.70 2.9% Beat
Q2, 2018 $0.64 $0.71 10.9% Beat
Q1, 2018 $0.63 $0.73 15.9% Beat
Q4, 2017 $0.62 $0.55 -11.3% Missed

In the following table, we summarize the company’s stock price movements after earnings releases. The “Price Day Prior” column shows the closing stock price on the day before the earnings report, and the “Price Next Day” column shows the stock price at the end of the trading day after the earnings report.

After the last earnings report for the period ending September 30, 2019, the stock price reacted by increasing by 9.2%.

Stock Price Performance After Earnings
Report Date Price Day Prior Price Next Day Change % Result
2019-10-23 $30.91 $33.75 9.2% Increase
2019-07-24 $27.40 $28.20 2.9% Increase
2019-04-24 $28.23 $28.41 0.6% Increase
2019-01-23 $28.11 $29.75 5.8% Increase

Fundamentals And Technical Analysis

Franklin Financial Network is currently trading at $33.93/share, down -1.5% for the day. The company is trading at approximately 95.6% of its 52-week high of $35.49/share. The company’s stock price is up 0.5% since the last earnings report and up 0.4% over the previous week.

The company’s 14 Day Relative Price Index (RSI) of 57.68 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.

NYSE:FSB Stock Price Chart Source: Finbox

The current share price implies a price-to-earnings (P/E) multiple of 21.9x and a forward P/E multiple of 14.7x.

Franklin Financial Network’s current share price also implies a price-to-book (P/B) multiple of 1.2x. The following table summarizes some other key fundamental ratios:

Data as of January 21, 2020
Metric Value
Last Fiscal Period FY2019.Q3
Period End Date September 30, 2019
Stock Price (Current) $33.93
P/E Ratio 21.9x
P/E Ratio (Fwd) 14.7x
PEG Ratio 0.6
Total Debt to Capital (%) 39.6%
Levered Free Cash Flow $15.921 million
Enterprise Value / EBITDA

Source: Finbox

Company Profile: Franklin Financial Network, Inc.

Franklin Financial Network, Inc. is a small-cap stock with a market capitalization of $507.1 million. The company operates in the Financial sector and the Banks industry.

Franklin Financial Network, Inc. operates as the bank holding company for Franklin Synergy Bank that provides banking and related financial services to small businesses, corporate entities, local governments, and individuals. Its deposit products include checking, savings, and certificate of deposit accounts; and demand deposits, interest-bearing transaction accounts, money market accounts, and municipal deposits.

The company also provides construction and land development, commercial real estate, residential real estate, commercial and industrial, and consumer and other loans. In addition, it offers retirement planning, financial planning, and investment services, as well as insurance products; and Internet banking, remote deposit capture, lockbox, and treasury management services.

The company operates through 15 branches and a loan production office in the Williamson, Rutherford, and Davidson counties in the Nashville metropolitan area.

Franklin Financial Network, Inc. was founded in 2007 and is headquartered in Franklin, Tennessee.

Expertise: financial technology, analyzing market trends. Brian is a founder at finbox.io, where he’s focused on building tools that make it faster and easier for investors to research stock fundamentals. Brian’s background is in physics & computer science and previously worked as a software engineer at GE Healthcare. He enjoys applying his expertise in technology to help find market trends that impact investors. Brian can be reached at brian@finbox.io or at +1 (516) 778-6257.

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