First Citizens BancShares, Inc. (NASDAQ:FCNCA) Quarterly Earnings Preview

First Citizens BancShares, Inc. (NASDAQ:FCNCA) is a financial institution based in Raleigh, North Carolina. It provides a range of banking services, including personal and business banking, wealth management, and mortgage services. Competing with other banks like Wells Fargo and Bank of America, FCNCA has carved out a niche with its strong financial performance and customer service.

On January 24, 2025, FCNCA reported earnings per share (EPS) of $45.10, surpassing the estimated $39.32. This performance exceeded the Zacks Consensus Estimate of $39.46 per share, although it was slightly lower than the $46.58 per share reported in the same quarter last year. This indicates a robust performance despite a minor year-over-year decline.

The company also reported revenue of approximately $2.41 billion, exceeding the estimated $2.23 billion. This strong revenue performance reflects the company's ability to generate sales and maintain its market position. The price-to-sales ratio of about 2.14 further underscores the company's market value relative to its sales.

FCNCA's financial metrics provide additional insights into its performance. The price-to-earnings (P/E) ratio of approximately 12.30 suggests a reasonable market valuation of its earnings. The enterprise value to sales ratio of around 4.67 and the enterprise value to operating cash flow ratio of approximately 24.00 indicate how the company's total value compares to its sales and cash flow from operations.

The company's financial leverage is highlighted by a debt-to-equity ratio of approximately 1.63. Despite this leverage, FCNCA maintains strong liquidity, as evidenced by a notably high current ratio of around 87.30. This suggests the company is well-positioned to meet its short-term obligations, providing a stable financial foundation.

First Citizens BancShares, Inc. (NASDAQ:FCNCA) is a financial institution based in Raleigh, North Carolina. It provides a range of banking services, including personal and business banking, wealth management, and mortgage services. Competing with other banks like Wells Fargo and Bank of America, FCNCA has carved out a niche with its strong financial performance and customer service.

On January 24, 2025, FCNCA reported earnings per share (EPS) of $45.10, surpassing the estimated $39.32. This performance exceeded the Zacks Consensus Estimate of $39.46 per share, although it was slightly lower than the $46.58 per share reported in the same quarter last year. This indicates a robust performance despite a minor year-over-year decline.

The company also reported revenue of approximately $2.41 billion, exceeding the estimated $2.23 billion. This strong revenue performance reflects the company's ability to generate sales and maintain its market position. The price-to-sales ratio of about 2.14 further underscores the company's market value relative to its sales.

FCNCA's financial metrics provide additional insights into its performance. The price-to-earnings (P/E) ratio of approximately 12.30 suggests a reasonable market valuation of its earnings. The enterprise value to sales ratio of around 4.67 and the enterprise value to operating cash flow ratio of approximately 24.00 indicate how the company's total value compares to its sales and cash flow from operations.

The company's financial leverage is highlighted by a debt-to-equity ratio of approximately 1.63. Despite this leverage, FCNCA maintains strong liquidity, as evidenced by a notably high current ratio of around 87.30. This suggests the company is well-positioned to meet its short-term obligations, providing a stable financial foundation.

First Citizens BancShares, Inc. (NASDAQ:FCNCA) is a financial services company that provides a range of banking services. It operates primarily in the United States and competes with other major banks in the industry. As FCNCA prepares to release its quarterly earnings on January 24, 2025, analysts have set their expectations for the company's financial performance.

Wall Street analysts estimate FCNCA's earnings per share (EPS) to be $39.32, while other projections suggest a slightly higher EPS of $39.46 for the quarter ending December 2024. This represents a 15.3% decline compared to the same period last year. Despite this decline, the stability in EPS estimates over the past 30 days indicates that analysts have not adjusted their expectations, which can influence investor actions.

Revenue projections for FCNCA are approximately $2.26 billion, with some analysts anticipating a slightly lower figure of $2.23 billion. This marks a 9% decrease from the previous year. The company's price-to-earnings (P/E) ratio of 12.31 reflects the market's valuation of its earnings, while its price-to-sales ratio of 2.14 indicates its market value relative to sales.

FCNCA's financial metrics provide insight into its valuation and financial health. The enterprise value to sales ratio is 4.67, and the enterprise value to operating cash flow ratio is 23.99, offering perspectives on the company's valuation in relation to sales and cash flow. The earnings yield of 8.13% suggests a return on investment, while the debt-to-equity ratio of 1.63 indicates financial leverage.

The company's current ratio is notably high at 87.30, suggesting strong liquidity. As highlighted by Zacks Investment Research, FCNCA is anticipated to surpass earnings estimates, which could lead to positive stock movement if actual results exceed expectations. The management's discussion during the earnings call will be crucial in assessing the sustainability of any immediate price changes and future earnings expectations.

Citi analysts increased their price target for First Citizens BancShares (NASDAQ:FCNCA) from $2,100 to $2,350 while maintaining a Neutral rating. The adjustment reflects revised cost of equity assumptions and a tempered outlook following the stock’s strong year-to-date performance.

Bank stock valuations have shifted from broadly attractive to more balanced over the past six months, supported by favorable election outcomes and growing optimism around a potential soft economic landing. The analysts adjusted their valuation model to align with early-cycle sentiment driving peak multiples in the near term. This update led to the higher price target for FCNCA.

First Citizens has been one of the top-performing bank stocks in 2023, even as consensus estimates for 2025 EPS have declined by 19% year-to-date. However, its recent outperformance and premium valuation relative to regional peers, with an implied cost of equity of 9.7%, limit near-term upside. While long-term prospects remain solid, Citi opted to stay on the sidelines for now, reflecting a more balanced risk-reward profile.

Citi analysts increased their price target for First Citizens BancShares (NASDAQ:FCNCA) from $2,100 to $2,350 while maintaining a Neutral rating. The adjustment reflects revised cost of equity assumptions and a tempered outlook following the stock’s strong year-to-date performance.

Bank stock valuations have shifted from broadly attractive to more balanced over the past six months, supported by favorable election outcomes and growing optimism around a potential soft economic landing. The analysts adjusted their valuation model to align with early-cycle sentiment driving peak multiples in the near term. This update led to the higher price target for FCNCA.

First Citizens has been one of the top-performing bank stocks in 2023, even as consensus estimates for 2025 EPS have declined by 19% year-to-date. However, its recent outperformance and premium valuation relative to regional peers, with an implied cost of equity of 9.7%, limit near-term upside. While long-term prospects remain solid, Citi opted to stay on the sidelines for now, reflecting a more balanced risk-reward profile.