First Financial Bankshares Earnings Preview

Investors are on the edge of their collective seats, hoping that First Financial Bankshares (Nasdaq: FFIN  ) will top analyst expectations for the fifth consecutive quarter. The company will unveil its latest earnings on Wednesday, July 20. First Financial Bankshares is a financial holding company, which, through its subsidiary banks, conducts a full-service commercial banking business.

What analysts say:

  • Buy, sell, or hold?: Analysts think investors should stand pat on First Financial Bankshares, with analysts unanimously rating it a hold. Analysts don't like First Financial Bankshares as much as competitor Texas Capital Bancshares overall. Five out of 13 analysts rate Texas Capital Bancshares a buy, compared with zero of eight for First Financial Bankshares. That rating hasn't budged in three months, as analysts have remained steadfast in their opinion of the stock.
  • Revenue forecasts: On average, analysts predict $52.7 million in revenue this quarter. That would represent a rise of 8.3% from the year-ago quarter.
  • Wall Street earnings expectations: The average analyst estimate is earnings of $0.52 per share. Estimates range from $0.51 to $0.53.

What our community says:
CAPS All Stars are split on FFIN, with 50% rating it an "outperform" and 50% giving it an "underperform" rating. The message boards have been quiet lately, with only 23 posts in the past 30 days. First Financial Bankshares' bearish CAPS rating of one out of five stars falls short of the Fool community's sentiment.

Management:
First Financial Bankshares' profit has risen year over year by an average of 15.8%. Revenue has now gone up for three straight quarters.

Now let's look at how efficient management is at running the business. Traditionally, margins represent the efficiency with which companies capture portions of sales dollars. The following table shows net margins over the past four quarters. 

Quarter Q1 Q4 Q3 Q2
Net Margin 31% 29.9% 32.3% 28.6%
For all our First Financial Bankshares-specific analysis, including earnings and beyond, add First Financial Bankshares to My Watchlist.

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Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On July 18, 2011, at 10:31 AM, FFIN wrote:

    First Financial Bankshares' second-quarter earnings will be released on Thursday, July 21, not on Wednesday, July 20.

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