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What Analyst Projections for Key Metrics Reveal About Mercantile Bank (MBWM) Q3 Earnings

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Wall Street analysts expect Mercantile Bank (MBWM - Free Report) to post quarterly earnings of $1.18 per share in its upcoming report, which indicates a year-over-year decline of 9.2%. Revenues are expected to be $56.83 million, down 2.4% from the year-ago quarter.

The current level reflects an upward revision of 0.3% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period.

Before a company reveals its earnings, it is vital to take into account any changes in earnings projections. These revisions play a pivotal role in predicting the possible reactions of investors toward the stock. Multiple empirical studies have consistently shown a strong association between trends in earnings estimates and the short-term price movements of a stock.

While investors usually depend on consensus earnings and revenue estimates to assess the business performance for the quarter, delving into analysts' forecasts for certain key metrics often provides a more comprehensive understanding.

That said, let's delve into the average estimates of some Mercantile Bank metrics that Wall Street analysts commonly model and monitor.

Analysts' assessment points toward 'Efficiency Ratio' reaching 54.4%. Compared to the current estimate, the company reported 49.7% in the same quarter of the previous year.

Based on the collective assessment of analysts, 'Net Interest Margin' should arrive at 3.5%. Compared to the present estimate, the company reported 4% in the same quarter last year.

The collective assessment of analysts points to an estimated 'Average Balances - Total earning assets (before allowance)' of $5.32 billion. Compared to the present estimate, the company reported $4.89 billion in the same quarter last year.

According to the collective judgment of analysts, 'Total Noninterest Income' should come in at $9.68 million. Compared to the present estimate, the company reported $9.25 million in the same quarter last year.

The combined assessment of analysts suggests that 'Net Interest Income' will likely reach $47.50 million. The estimate is in contrast to the year-ago figure of $48.96 million.

View all Key Company Metrics for Mercantile Bank here>>>

Shares of Mercantile Bank have experienced a change of -1.4% in the past month compared to the +5.9% move of the Zacks S&P 500 composite. With a Zacks Rank #3 (Hold), MBWM is expected to mirror the overall market performance in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>


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