First Citizens BancShares, Inc. (NASDAQ: FCNCA), headquartered in Jacksonville, Florida, is set to announce its financial performance for the fourth quarter prior to the market opening on Friday, January 23. Current analyst consensus points toward a decrease in earnings per share (EPS), expecting $43.91, down from $45.10 recorded in the corresponding period last year. Revenue is projected to edge upward slightly, with estimates at $2.29 billion compared to $2.23 billion in the prior year, reflecting modest top-line growth.
Adding to the corporate developments, the bank revealed on January 14 the planned retirement of Lorie K. Rupp, serving as executive vice president and chief risk officer. This departure introduces an element of transition within the executive leadership of the company.
Investors responded modestly to recent news, with First Citizens BancShares shares closing at $2,203.53 on Thursday, registering a 1% gain.
Market analyst coverage highlights several revised opinions based on updated financial outlooks, focusing particularly on price targets and rating stances ahead of the earnings report.
- Barclays: Analyst Jason Goldberg upheld an Equal-Weight rating while elevating his price target from $2,190 to $2,456. Mr. Goldberg holds a 62% accuracy rate, reflecting his historical competency in forecasting stock performance.
- Citigroup: Benjamin Gerlinger continues to rate the stock as Neutral, though he increased the target price from $2,000 to $2,250. His accuracy rate stands at 58%, indicating a moderate level of reliability in his assessments.
- Truist Securities: Brian Foran maintains a Hold rating on FCNCA and adjusted his price target upward from $2,000 to $2,050. Notably, he has a strong accuracy percentage of 78%, underlining his dependable analytic insight.
- Keefe, Bruyette & Woods: Christopher Mcgratty reiterates an Outperform rating, but notably reduced the price target slightly from $2,100 to $2,050. His accuracy rate is 74%, demonstrating solid predictive experience.
- Piper Sandler: Stephen Scouten continues to view the shares as Neutral, though he decreased his price expectation from $2,150 to $2,000. His accuracy rate is relatively high at 75%, contributing significant weight to his assessment.
These revisions reflect a general cautious stance among brokerages, balancing the expected dip in earnings against marginal revenue growth. The price targets, while mostly adjusted upwards or slightly downwards, remain close to current trading levels, suggesting limited anticipated volatility.
The market’s mixed responses and the executive leadership change may be notable elements for investors to monitor in the near term. The retirement of the chief risk officer, a pivotal role overseeing the bank’s exposure and compliance, could have operational implications, although no further details have been disclosed.
Given the data available and analyst updates, stakeholders might consider the outlook as somewhat stable but with clear signals of slowing profitability growth, which is a typical concern in the banking sector amid evolving economic conditions and regulatory environments.
First Citizens BancShares' position in the competitive regional banking landscape, combined with these nuanced earnings expectations and leadership transitions, warrants close investor scrutiny ahead of the official earnings release.