First Midwest Q3 Earnings: Can NasdaqGS:FMBI Hit Its $0.22 EPS Target?

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First Midwest Bancorp, Inc. (NasdaqGS:FMBI) is scheduled to report Q3 earnings results after markets close for trading on October 20, 2020.

The company is expected to report earnings of $0.22/share on revenue of $177.7 million. The consensus earnings per share (EPS) of $0.22/share is based on a poll of 6 analysts and represents a decline in eps of −58.0% over the same quarter last year, when the company reported earnings of $0.52/share.

The revenue forecast of $177.7 million based on a poll of 5 analysts implies a year-over-year (YoY) decline in revenue of −8.3%. Last year the company reported $193.7 million in revenue for the quarter.

Expected to report EPS contraction of −58.0% for Q3, 2020
Metric Expected Prior Year YoY Change
Revenue $177.72 $193.74 −8.3%
EPS $0.22 $0.52 −58.0%

Earnings Call Trends

Historically, management has exceeded analyst expectations 6 out of the last 8 tracked quarters, missed 1 quarters, and met expectations 1 quarters.

What are your expectations from First Midwest Bancorp, Inc. for earnings this quarter? Let us know in the comments!

Analyst Expected vs. Reported EPS
Quarter Expected Reported Surprise Result
Q2, 2020 $0.15 $0.19 26.7% Beat
Q1, 2020 $0.33 $0.22 −34.0% Missed
Q4, 2019 $0.50 $0.51 2.3% Beat
Q3, 2019 $0.49 $0.52 5.9% Beat
Q2, 2019 $0.48 $0.50 3.9% Beat
Q1, 2019 $0.46 $0.46 0.8% Beat
Q4, 2018 $0.47 $0.48 2.9% Beat
Q3, 2018 $0.46 $0.46 1.1% Beat

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 June 30, 2020, the stock price reacted by increasing 1.4%.

Stock Price Performance After Earnings
Report Date Price Day Prior Price Next Day Change % Result
July 21, 2020 $12.46 $12.64 1.4% Increase
May 1, 2020 $14.78 $13.49 −8.7% Decline
January 21, 2020 $22.30 $21.50 −3.6% Decline
October 22, 2019 $20.02 $20.50 2.4% Increase

Fundamentals And Technical Analysis

First Midwest Bancorp, Inc. is currently trading at $12.14/share, up 1.8% for the day. The company is trading at approximately 51.4% of its 52-week high of $23.64/share. The company’s stock price is down −4.0% since the last earnings report and up 1.0% over the previous week. The company’s 14 Day Relative Price Index (RSI) of 49.62 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.


NasdaqGS:FMBI Stock Price Chart
Source: Finbox

The current share price implies a price-to-earnings (P/E) multiple of 9.53 and a forward P/E multiple of 12.83.

First Midwest Bancorp, Inc.’s current share price also implies a price-to-book (P/B) multiple of 0.56. The following table summarizes some other key fundamental ratios:

Data as of October 19, 2020
Metric Value
Last Reported Fiscal Period Key FY2020.Q2
Period End Date June 30, 2020
Stock Price (Current) $12.14
P/E Ratio 9.5x
P/E Ratio (Fwd) 12.8x
PEG Ratio −0.3
Total Debt / Total Capital 63.3%
Levered Free Cash Flow $123.8 million
EV / EBITDA 8.9%

Finbox

First Midwest Bancorp, Inc. is a small-cap stock with a market capitalization of $1.364 billion. The company operates in the Financials sector and the Banks industry.

First Midwest Bancorp, Inc. operates as the bank holding company for First Midwest Bank that provides various banking products and services. The company accepts checking, NOW, money market, and savings accounts, as well as various types of short-term and long-term certificates of deposit. Its loan products include working capital loans; accounts receivable financing; inventory and equipment financing; sector-based lending, including healthcare, asset-based lending, structured finance, and syndications; agricultural loans; and mortgages, home equity lines and loans, personal loans, specialty loans, and consumer secured and unsecured loans, as well as funding for the construction, purchase, refinance, or improvement of commercial real estate properties. In addition, the company offers treasury management products and services comprising automated clearing house collection, lockbox, remote deposit capture, and financial electronic data interchange; wire transfer, account reconciliation, controlled disbursement, direct deposit, and positive pay services; information reporting services; corporate credit cards; and liquidity management, fraud prevention, and merchant services. Further, it provides fiduciary and executor, financial planning, investment advisory, employee benefit plan, and private banking services to corporate and public retirement plans, foundations and endowments, high net worth individuals, and multi-employer trust funds. Additionally, the company offers debit and automated teller machine, and credit cards; Internet and mobile, and telephone banking services; and financial education services. The company operates 127 locations and 178 automated teller machines in metropolitan Chicago, southeast Wisconsin, northwest Indiana, central and western Illinois, and eastern Iowa. First Midwest Bancorp, Inc. was incorporated in 1982 and is headquartered in Chicago, Illinois.

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