First Foundation FFWM 2025Q2 Earnings Preview Upside Ahead on EPS Growth Despite Analyst Downgrades

Forward-Looking Analysis
First Foundation is anticipated to report improved earnings in the second quarter of 2025. Analysts forecast a strong EPS growth, with expectations rising from $0.28 to $0.43 per share, representing a significant leap from the trailing EPS of -$1.27. The company’s recent return to profitability, marked by a net income of $6.9 million or $0.08 per share in Q1 2025, provides a positive backdrop for Q2 earnings. However, DA Davidson analyst G. Tenner has revised the FY2025 EPS forecast downward to $0.53 per share from $0.54, suggesting caution amid optimistic EPS growth. Despite this, First Foundation's financial services operations through its subsidiaries, First Foundation Advisors and First Foundation Bank, remain robust, underscoring the firm's potential for sustained earnings growth. Analysts remain watchful, noting that First Foundation lacks the ideal factors for a guaranteed earnings beat, but the expected EPS trajectory indicates positive momentum.

Historical Performance Review
In Q1 2025, First Foundation achieved a net income of $6.9 million, translating to an earnings per share of $0.08. This performance exceeded analysts' expectations, where the EPS forecast was initially pegged at $0.03. The company reported revenue of $71.3 million, showcasing a return to profitability and a positive financial trajectory after previous challenges.

Additional News
First Foundation, a financial services company with subsidiaries First Foundation Advisors and First Foundation Bank, continues its strategic operations. The company announced its upcoming second-quarter earnings date, signaling ongoing business activities. While specific earnings-related news has not been highlighted, the firm maintains its focus on delivering value through its financial advisory and banking services. Recent analyst activity, such as DA Davidson's EPS forecast revision, reflects the company's market position and potential challenges. Despite the analyst downgrade, First Foundation remains committed to its operational goals and growth strategies, emphasizing its dedication to sustaining financial health in the competitive financial services landscape.

Summary & Outlook
First Foundation exhibits a cautiously optimistic outlook as it approaches its Q2 2025 earnings report. The company’s return to profitability in Q1 and projected EPS growth present a positive financial trajectory. However, the revised EPS forecast by DA Davidson introduces an element of risk. Overall, First Foundation continues to navigate competitive pressures and market dynamics effectively, with its subsidiaries playing a crucial role in maintaining robust operations. The outlook remains neutral, balancing growth prospects against the recent analyst downgrade.