Shares of First Interstate BancSystem (FIBK) plummeted 8.28% in Wednesday's trading session following the release of disappointing first-quarter earnings results. The significant drop came after the banking company reported financial performance that fell short of analyst expectations, causing investors to reassess their positions.
First Interstate BancSystem announced its Q1 earnings late Tuesday, reporting earnings per diluted share of $0.49, down from $0.57 in the same period last year. This figure significantly missed the $0.56 per share that analysts polled by FactSet had anticipated. The company's revenue, calculated as the sum of net interest income and non-interest income, came in at $247 million. While this represented a slight increase from $242.2 million a year earlier, it still fell short of the $253.9 million forecast by analysts.
The market's reaction to the earnings miss was swift and severe. After initially falling 5.3% in after-hours trading on Tuesday, the stock continued its downward trajectory in pre-market trading on Wednesday, setting the stage for the significant intraday plunge. As investors digest this information, they will likely be looking for additional commentary from management regarding the factors behind the weaker-than-expected performance and strategies to improve results in the coming quarters.
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