How did FBNC's Q4 earnings surprise impact investor sentiment?

**First Bancorp's (FBNC) Q4 earnings surprise had a mixed impact on investor sentiment**, as evidenced by the following: 1. **Positive Earnings Surprise**: FBNC reported an EPS of $0.76 for Q4, surpassing the consensus estimate of $0.72 by $0.04. This positive surprise indicates the company's performance exceeded market expectations, which is generally viewed favorably by investors. 2. **Stock Reaction**: Despite the positive earnings surprise, FBNC's stock traded down by 0.3% during mid-day on the day the earnings were released. This could suggest that investors were concerned about other aspects of the company's performance or had reservations about the future prospects of the bank. 3. **Analyst Ratings**: The mixed analyst ratings further highlight the complexity of investor sentiment. While Stephens upgraded FBNC to a "strong-buy" rating, other brokerages such as Keefe, Bruyette & Woods boosted their price target but maintained a more neutral stance, and Janney Montgomery Scott downgraded FBNC from a "buy" to a "neutral" rating. This divergence in analyst opinions reflects the uncertainty among investors regarding the company's future performance. 4. **Dividend Announcement**: The recent dividend announcement of $0.22 per share could be seen as a positive sign for income-focused investors, potentially stabilizing sentiment in the near term. However, dividend actions alone may not fully offset the impact of earnings surprises on long-term investor sentiment. 5. **Market Conditions**: The broader market conditions and industry trends also play a significant role in shaping investor sentiment. FBNC's stock drop of 5.03% amidst industry decline suggests that sector-wide factors may have influenced investor sentiment more than the earnings surprise alone. In conclusion, while FBNC's Q4 earnings surprise was positive, the impact on investor sentiment was likely tempered by other factors such as market conditions, analyst ratings, and the company's dividend announcement. The mixed analyst ratings post-earnings release further highlight the nuanced nature of investor sentiment in response to earnings surprises.