SFNC Earnings Prediction
The chart below shows how SFNC performed 10 days before and after its earnings report, based on data from the past quarters. Typically, SFNC sees a -1.47% change in stock price 10 days leading up to the earnings, and a -0.31% change 10 days following the report. On the earnings day itself, the stock moves by -2.55%. This data can give you a slight idea of what to expect for the next quarter's release.
SFNC Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
161.34M
-11.96%
-13.07%
Gross Margin
--
--
--
Operating Margin
16.11%
-48.45%
-37.05%
Net Margin
15.33%
-40.54%
-30.19%
EPS
0.20
-45.95%
-37.50%
No Data Available
SFNC Earnings Analysis
Simmons First National Corp Corporation (SFNC.O) Earnings Conference Call
Positive
Bond Sale Success: Opportunistic bond sale resulted in favorable economic returns, with the 10-year yield dropping significantly during the quarter, allowing for advantageous positioning in the bond portfolio.
Deposit Cost Management: Deposit costs peaked at 2.81% in June but decreased to 2.75% in September following a 50 basis point rate cut, indicating effective management of deposit pricing.
Cost Management Success: Core expenses decreased by 1% to 2% from the Q4 2022 annualized run rate, demonstrating successful cost management and operational efficiency.
Customer Account Expansion: Customer account growth was achieved, with a focus on retaining relationship dollars and increasing core accounts, contributing positively to the bank's overall strategy.
Net Interest Margin Outlook: Expectations for net interest margin (NIM) to approach 3% in the back half of next year, driven by asset repricing and a favorable economic environment.
Negative
Deposit Cost Trends: Higher deposit costs peaked at 2.81% in June, leading to a decrease to 2.75% in September, indicating ongoing pressure on margins due to rising funding costs.
Modest Loan Growth Challenges: Loan growth remains modest, with a focus on profitability over expansion, suggesting potential challenges in achieving aggressive growth targets in the near term.
ROA Improvement Needed: Operating return on assets (ROA) is currently at 67 basis points, significantly below the target of 1%, indicating a need for improvement in profitability metrics.
Net Interest Margin Challenges: The net interest margin (NIM) is at 2.74%, with expectations for only gradual improvement, highlighting challenges in achieving competitive margins in the current rate environment.
Rate Cut Impact on Margins: The company anticipates a lag effect from the recent 50 basis point rate cut, which may hinder immediate margin recovery and overall financial performance.
SFNC FAQs
How does SFNC typically perform around its earnings report dates?
Is Earnings call transcript: Simmons First National surpasses Q3 2024 expectations positive or negative?
How can historical earnings data help predict future stock performance?
SFNC Earning Call Sentiment
Earnings call transcript: Simmons First National surpasses Q3 2024 expectations
SFNC.O
-1.19%Positive
The earnings call summary presents a mixed picture: strong cost management and positive growth in customer accounts, but unclear guidance on NIM and competitive pressures on deposits. The Q&A revealed management's vague responses on key metrics, indicating uncertainty. Positive factors like cost discipline and potential NIM improvement are offset by management's lack of clarity, leading to a neutral sentiment. Given the market cap of $2.14 billion, the stock price is unlikely to experience significant movement, resulting in a neutral prediction of -2% to 2% over the next two weeks.
