Farmers & Merchants Bancorp Q2 pretax profit beats analyst estimates - FMAO News | RalliesFarmers & Merchants Bancorp Q2 pretax profit beats analyst estimates
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FMAO• Outlook and strategic plan
- The company sees favorable business and economic trends across Ohio, Indiana and Michigan markets
- Farmers & Merchants Bancorp expects to build on earnings momentum under a new three-year strategic plan
- The company believes it is positioned for sustained profitable growth and long-term value creation
Analyst coverage and valuation
- The current average analyst rating on the shares is hold, with no strong buy or buy ratings, 3 hold ratings and no sell or strong sell ratings
- The average consensus recommendation for the banks peer group is buy
- Wall Street's median 12-month price target for Farmers & Merchants Bancorp Inc is $29.00, about 6.3% below its July 24 closing price of $30.95
- The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 9 three months ago
Result drivers and key details
- Net interest margin expansion - the company said a higher net interest margin contributed to record profitability
| Metric | Beat/Miss | Actual | Consensus Estimate |
|---|
| Q2 EPS | | $0.86 | |
| Q2 Net Income | | $11.80 mln | |
| Q2 Pretax Profit | Beat | $14.77 mln | $12.13 mln (3 Analysts) |
| Q2 Basic EPS | | $0.86 | |
| Q2 Loan Loss Provision | | $173,000 | |
Q2 pretax profit beats estimates
- US community bank's preliminary Q2 pretax profit beat analyst expectations
- Preliminary Q2 net income rose 53% year over year to a record, with EPS at $0.86
- Profitability was driven by net interest margin expansion and higher noninterest income
