First Interstate BancSystem (FIBK) Misses Q3 Earnings Estimates

Core Viewpoint - First Interstate BancSystem reported quarterly earnings of $0.54 per share, missing the Zacks Consensus Estimate of $0.60 per share, and showing a decline from $0.70 per share a year ago, indicating a -10% earnings surprise [1] Group 1: Earnings Performance - The company posted revenues of $251.9 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 0.80%, but down from $255.7 million year-over-year [1] - Over the last four quarters, First Interstate BancSystem has surpassed consensus EPS estimates three times [1] - The current consensus EPS estimate for the upcoming quarter is $0.61 on revenues of $254.5 million, and for the current fiscal year, it is $2.34 on revenues of $990.8 million [4] Group 2: Stock Performance and Outlook - Since the beginning of the year, First Interstate BancSystem shares have increased by about 3.9%, compared to the S&P 500's gain of 21.5% [2] - The estimate revisions trend for the company is currently favorable, leading to a Zacks Rank 1 (Strong Buy), suggesting that the shares are expected to outperform the market in the near future [4] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [3] Group 3: Industry Context - The Banks - Midwest industry, to which First Interstate BancSystem belongs, is currently in the top 22% of over 250 Zacks industries, indicating a favorable industry outlook [5] - The top 50% of Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1, suggesting a positive environment for the company [5]