FMP

FMP

First Horizon Corporation (NYSE: FHN) Earnings Preview: Anticipated Growth in Q4

  • First Horizon Corporation is expected to report a 7% increase in EPS and a revenue rise to approximately $862.8 million for Q4.
  • Analysts have revised the consensus EPS estimate upward by 3.1%, indicating potential investor interest and possible stock price movements.
  • Despite a positive earnings outlook, First Horizon's shares recently saw a slight decline, with a Hold rating from TD Cowen analyst Janet Lee.

First Horizon Corporation (NYSE:FHN), based in Memphis, Tennessee, is preparing to release its fourth-quarter earnings on January 15, 2026. The company is expected to report earnings per share (EPS) of $0.46, a 7% increase from the previous year. Analysts also project revenue to reach approximately $862.8 million, up from $824 million in the same period last year.

The anticipated growth in earnings and revenue reflects a positive trend for First Horizon. Over the past month, analysts have revised the consensus EPS estimate upward by 3.1%. Such revisions often signal potential investor interest and can impact the stock's short-term price movements. Historically, changes in earnings estimates have been linked to stock price fluctuations.

Despite the positive earnings outlook, First Horizon's shares recently saw a slight decline of 0.2%, trading at $24.17. TD Cowen analyst Janet Lee, with a 64% accuracy rate, maintained a Hold rating on the stock. She also increased the price target from $24 to $26, indicating a cautious yet optimistic stance on the stock's future performance.

First Horizon's financial metrics provide additional context for investors. The company has a price-to-earnings (P/E) ratio of 13.73 and a price-to-sales ratio of 2.59. Its enterprise value to sales ratio is 3.57, while the enterprise value to operating cash flow ratio is notably high at 40.38. These figures suggest a moderate valuation with some potential liquidity concerns, as indicated by a low current ratio of 0.15.

The upcoming earnings report will be crucial for First Horizon's stock performance. If the company meets or exceeds expectations, it could lead to a rise in the stock price. Conversely, falling short of expectations might result in a decline. Investors will also pay close attention to management's discussion of business conditions, which will influence the stock's future trajectory.