FBK Stock Surges After Major Q4 Earnings Beat and Share Buyback
FB Financial Corp. rallied more than 5% after reporting earnings that were 21% ahead of estimates and announcing a significant share repurchase program.
Shares of FB Financial Corp. (NYSE: FBK) jumped more than 5% on Tuesday after the Nashville-based bank reported fourth-quarter financial results that significantly outperformed Wall Street expectations and unveiled a substantial share repurchase.
The parent company of FirstBank posted an adjusted earnings per share of $1.16, smashing the consensus analyst estimate of $0.96 by nearly 21%. Revenue for the quarter also provided a strong upside surprise, coming in at $178.6 million, a 6.5% beat against estimates. The robust performance signaled strong operational efficiency and profitability heading into the new year.
Following the news, FBK’s stock price climbed 5.37% to close at $61.62, touching a new 52-week high and reflecting strong investor confidence. The move was further bolstered by the company's aggressive capital return strategy. According to its latest financial disclosures, the company repurchased 1,717,948 shares during the quarter. At recent trading levels, this buyback represents a capital deployment of over $100 million, underscoring management's belief that its stock remains undervalued.
With a market capitalization of approximately $3.19 billion, FB Financial operates as a key regional bank holding company, providing commercial and consumer banking services primarily across the southeastern United States. The company has focused on a relationship-driven banking model, which appears to be paying dividends in the form of strong earnings.
The strong results caught the attention of market analysts, whose sentiment is already firmly positive on the stock. FB Financial currently holds six 'Buy' or 'Strong Buy' ratings from covering analysts, with only one 'Hold' rating and no 'Sell' ratings. The consensus price target sits at $65.17, suggesting that Wall Street sees additional room for growth even after the recent rally.
The bank’s forward P/E ratio of approximately 14.9 stands out in the financial sector, suggesting that investors expect earnings to remain strong in the coming year. The combination of a significant earnings beat, a clear commitment to returning capital to shareholders, and a bullish outlook from analysts provided a powerful catalyst for the stock’s breakout performance.