First Citizens (FCNCA) Q2 Earnings Preview: What You Should Know Beyond the Headline Estimates

Wall Street analysts expect First Citizens BancShares (FCNCA) to post quarterly earnings of $40.45 per share in its upcoming report, which indicates a year-over-year decline of 9.7%. Revenues are expected to be $2.16 billion, down 2% from the year-ago quarter.

Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted upward by 0.7% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.

Ahead of a company's earnings disclosure, it is crucial to give due consideration to changes in earnings estimates. These revisions serve as a noteworthy factor in predicting potential investor reactions to the stock. Numerous empirical studies consistently demonstrate a strong relationship between trends in earnings estimate revision and the short-term price performance of a stock.

While investors typically rely on consensus earnings and revenue estimates to gauge how the business may have fared during the quarter, examining analysts' projections for some of the company's key metrics often helps gain a deeper insight.

That said, let's delve into the average estimates of some First Citizens metrics that Wall Street analysts commonly model and monitor.

Analysts predict that the 'Efficiency Ratio' will reach 62.5%. The estimate is in contrast to the year-ago figure of 63.2%.

The collective assessment of analysts points to an estimated 'Net Interest Margin' of 3.1%. Compared to the current estimate, the company reported 3.3% in the same quarter of the previous year.

Analysts expect 'Book value per share' to come in at $1766.74 . Compared to the current estimate, the company reported $1637.72 in the same quarter of the previous year.

The average prediction of analysts places 'Nonaccrual loans at period end' at $1.36 billion. Compared to the current estimate, the company reported $1.32 billion in the same quarter of the previous year.

Analysts' assessment points toward 'Total nonperforming assets' reaching $1.42 billion. The estimate is in contrast to the year-ago figure of $1.42 billion.

It is projected by analysts that the 'Average Balance - Total interest-earning assets' will reach $215.57 billion. Compared to the present estimate, the company reported $208.18 billion in the same quarter last year.

According to the collective judgment of analysts, 'Net Interest Income' should come in at $1.64 billion. Compared to the present estimate, the company reported $1.70 billion in the same quarter last year.

The consensus estimate for 'Total Noninterest Income' stands at $583.90 million. Compared to the current estimate, the company reported $678.00 million in the same quarter of the previous year.

Analysts forecast 'Deposit fees and service charges' to reach $72.98 million. Compared to the present estimate, the company reported $59.00 million in the same quarter last year.

The combined assessment of analysts suggests that 'Merchant services, net' will likely reach $13.17 million. Compared to the current estimate, the company reported $13.00 million in the same quarter of the previous year.

The consensus among analysts is that 'Factoring commissions' will reach $17.94 million. The estimate is in contrast to the year-ago figure of $18.00 million.

Based on the collective assessment of analysts, 'Cardholder services, net' should arrive at $39.24 million. Compared to the current estimate, the company reported $41.00 million in the same quarter of the previous year.

Shares of First Citizens have experienced a change of -0.4% in the past month compared to the -0.6% move of the Zacks S&P 500 composite. With a Zacks Rank #2 (Buy), FCNCA is expected to outperform the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

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This article originally published on Zacks Investment Research (zacks.com).

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