Fs Bancorp FSBW 2025Q2 Earnings Preview Upside Potential on Revenue Growth

Forward-Looking Analysis
FS Bancorp (FSBW) is anticipated to report higher revenues for Q2 2025, despite a year-over-year decline in earnings. The consensus estimate for full-year earnings stands at $4.26 per share, with DA Davidson projecting FY2025 earnings at $4.12 EPS. Analysts have frequently revised price targets, with recent increases to $53.00 and decreases to $36.00. FS Bancorp's earnings growth is forecast at 1.4% per annum, which is below the bank industry average of 8.0%. Meanwhile, revenue growth is expected at 6.6%, indicating potential upside. The company has also announced an equity buyback for $5 million worth of shares, which may bolster investor confidence. Despite low analyst coverage, FS Bancorp's ability to beat expectations in past quarters suggests resilience in the face of challenging market conditions.

Historical Performance Review
In Q1 2025, FS Bancorp reported a net income of $8.02 million and an EPS of $1.02. Despite the absence of reported revenue and gross profit figures, the company's earnings exceeded analyst expectations. This performance reflects a slight decline compared to the previous year, with net income decreasing from $8.4 million and EPS dropping from $1.06.

Additional News
Recent developments at FS Bancorp include an equity buyback announcement worth $5 million on July 10, 2025. The company held its Annual General Meeting in May 2025 and announced changes to its executive team, including a new Chief Financial Officer. FS Bancorp also increased its quarterly dividend to $0.28 in April 2025. Despite facing challenges, including price target reductions to $33.50, FS Bancorp continues to demonstrate strategic movements. The equity buyback and dividend increase signal confidence in its financial position and commitment to shareholder value.

Summary & Outlook
FS Bancorp's financial health appears stable, supported by strategic initiatives like equity buybacks and dividend increases. The projected revenue growth suggests upside potential, though earnings growth remains below industry averages. The company has consistently exceeded analyst expectations, showcasing resilience amid market fluctuations. Despite low analyst coverage and recent price target adjustments, FS Bancorp's proactive measures indicate a bullish outlook for its future prospects, with revenue growth serving as a key catalyst for continued success.