News
MVB Financial (MVBF) Misses Q2 Earnings and Revenue Estimates
MVB Financial (MVBF) reported quarterly earnings of $0.31 per share, missing the Zacks Consensus Estimate of $0.40 per share. This compares to earnings of $0.63 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of -22.50%. A quarter ago, this company was expected to post earnings of $0.41 per share when it actually produced earnings of $0.34, delivering a surprise of -17.07%.
In the last four quarters, the company has surpassed consensus EPS estimates only once.
MVB Financial, which belongs to the Zacks Financial – Miscellaneous Services industry, posted revenues of $34.71 million for the quarter ended June 2024, missing the Zacks Consensus Estimate by 9.13%. This compares to year-ago revenues of $36 million. The company has surpassed consensus revenue estimates only once in the past four quarters.
The sustainability of the stock’s immediate price movement based on recently-released numbers and future earnings expectations will mostly depend on management’s commentary on the earnings call.
MVB Financial shares are up about 9.8% since the start of the year, compared with the S&P 500’s gain of 14.5%.
What’s next for MVB Financial?
While MVB Financial has underperformed the market so far this year, the question that comes to investors’ minds is: what’s next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address it is the company’s earnings outlook. This includes not only current consensus earnings expectations for the upcoming quarter(s), but also how those expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track these revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for MVB Financial: favorable. While the magnitude and direction of estimate revisions could change following the company’s just-released earnings report, the current status translates into a Zacks Rank #1 (Strong Buy) for the stock. Therefore, the stock is expected to outperform the market in the near future. You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.
It will be interesting to see how the estimates for the upcoming quarters and the current fiscal year change in the coming days. The current consensus EPS estimate is $0.46 on $39.48 million in revenue for the upcoming quarter and $1.68 on $155.42 million in revenue for the current fiscal year.
The story continues
Investors should be aware of the fact that the outlook for the sector can have a material impact on stock performance as well. In terms of the Zacks Industry Rank, Financial – Miscellaneous Services currently ranks in the top 41% of the 250+ Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock in the same sector, Royalty Pharma (RPRX), has not yet released results for the quarter ending in June 2024. Results are due on August 8.
This company is expected to post quarterly earnings of $0.95 per share in its next report, representing a year-over-year change of +11.8%. The consensus EPS estimate for the quarter has been revised 1.1% higher over the last 30 days to the current level.
Royalty Pharma is expected to report revenue of $600.83 million, up 10.2% from the year-ago quarter.
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Mvb Financial Corp. (MVBF): Free Stock Analysis Report
Royalty Pharma PLC (RPRX): Free Stock Analysis Report