Despite Lower EPS, First Business Financial Services Looks Positive with Revenue Growth Forecasts and Stable Industry Trends

First Business Financial Services (NASDAQ: FBIZ) recently reported its first quarter 2024 financial results, showing a revenue of US$33.9m, which was a 1.2% increase from the first quarter of 2023. Net income also saw a slight increase to US$8.63m, with a profit margin of 25%, in line with the previous year. However, earnings per share (EPS) rose only to US$1.06 from US$1.05 in the first quarter of 2023, missing analyst estimates by 6.8%.

Despite these shortfalls, revenue growth forecasts for the next two years are optimistic, with First Business Financial Services predicting an annual growth rate of 11%, outpacing the industry average of 6.0% growth in the Banks sector in the US. The American Banks industry has been stable overall, but it’s worth noting that First Business Financial Services’ share price has remained relatively unchanged from the previous week.

A more comprehensive analysis of First Business Financial Services’ balance sheet is available to provide a fuller picture of its financial health. If you have any feedback on this article or concerns about its content, please feel free to reach out directly or email our editorial team at simplywallst.com. Please note that our analysis is based on historical data and analyst forecasts and does not constitute financial advice. Our aim is to provide long-term focused analysis using unbiased methodology.

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In conclusion, while First Business Financial Services showed positive financial figures for its first quarter 2024 results, there were still some shortfalls in revenue and EPS compared to analyst estimates