Wall Street analysts expect Mercantile Bank (MBWM) to post quarterly earnings of $1.37 per share in its upcoming report, which indicates a year-over-year increase of 12.3%. Revenues are expected to be $61.8 million, up 5.6% from the year-ago quarter.
The consensus EPS estimate for the quarter has been revised 9.4% lower over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.
Before a company reveals its earnings, it is vital to take into account any changes in earnings projections. These revisions play a pivotal role in predicting the possible reactions of investors toward the stock. Multiple empirical studies have consistently shown a strong association between trends in earnings estimates and the short-term price movements 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 Mercantile Bank metrics that Wall Street analysts commonly model and monitor.
Analysts forecast 'Efficiency Ratio' to reach 54.8%. Compared to the present estimate, the company reported 57.8% in the same quarter last year.
It is projected by analysts that the 'Net Interest Margin' will reach 3.5%. Compared to the present estimate, the company reported 3.4% in the same quarter last year.
Analysts' assessment points toward 'Average Balances - Total earning assets (before allowance)' reaching $5.95 billion. Compared to the current estimate, the company reported $5.64 billion in the same quarter of the previous year.
According to the collective judgment of analysts, 'Total Noninterest Income' should come in at $9.98 million. The estimate is in contrast to the year-ago figure of $10.17 million.
Based on the collective assessment of analysts, 'Net Interest Income' should arrive at $51.92 million. Compared to the current estimate, the company reported $48.36 million in the same quarter of the previous year.
The consensus estimate for 'Mortgage banking income' stands at $2.85 million. The estimate compares to the year-ago value of $3.61 million.
View all Key Company Metrics for Mercantile Bank here>>>
Mercantile Bank shares have witnessed a change of -2.3% in the past month, in contrast to the Zacks S&P 500 composite's +2.1% move. With a Zacks Rank #4 (Sell), MBWM is expected underperform the overall market performance in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
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Mercantile Bank Corporation (MBWM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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