FS Bancorp, Inc. (NASDAQ:FSBW) defied analyst predictions to release its third-quarter results, which were ahead of market expectations. FS Bancorp beat earnings, with revenues hitting US$37m, ahead of expectations, and statutory earnings per share outperforming analyst reckonings by a solid 12%. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Taking into account the latest results, the consensus forecast from FS Bancorp's three analysts is for revenues of US$150.1m in 2025. This reflects a satisfactory 7.6% improvement in revenue compared to the last 12 months. Statutory earnings per share are forecast to shrink 2.6% to US$4.65 in the same period. In the lead-up to this report, the analysts had been modelling revenues of US$150.6m and earnings per share (EPS) of US$4.73 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

The analysts reconfirmed their price target of US$47.50, showing that the business is executing well and in line with expectations. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic FS Bancorp analyst has a price target of US$50.00 per share, while the most pessimistic values it at US$45.00. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that FS Bancorp's revenue growth is expected to slow, with the forecast 6.1% annualised growth rate until the end of 2025 being well below the historical 7.9% p.a. growth over the last five years. Compare this to the 676 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 6.6% per year. Factoring in the forecast slowdown in growth, it looks like FS Bancorp is forecast to grow at about the same rate as the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple FS Bancorp analysts - going out to 2026, and you can see them free on our platform here.

You can also see whether FS Bancorp is carrying too much debt, and whether its balance sheet is healthy, for free on our platform here.

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