First Merchants (FRME) Q4 Earnings and Revenues Beat Estimates

Core Insights - First Merchants (FRME) reported quarterly earnings of $1 per share, exceeding the Zacks Consensus Estimate of $0.90 per share, and showing an increase from $0.87 per share a year ago, resulting in an earnings surprise of 11.11% [1] - The company achieved revenues of $177.11 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 9.80% and increasing from $156.51 million year-over-year [2] - First Merchants has outperformed the S&P 500, gaining approximately 3.4% since the beginning of the year compared to the S&P 500's gain of 2.7% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.85 on revenues of $159 million, while the estimate for the current fiscal year is $3.55 on revenues of $652.8 million [7] - The estimate revisions trend for First Merchants is favorable, leading to a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [6] Industry Context - The Banks - Midwest industry, to which First Merchants belongs, is currently ranked in the top 6% of over 250 Zacks industries, suggesting a strong performance potential [8] - Another company in the same industry, Heartland Financial (HTLF), is expected to report quarterly earnings of $1.03 per share, reflecting a year-over-year change of -2.8%, with revenues projected at $175.79 million, up 296.5% from the previous year [9]