Why Did Simmons First National Drop 1.81%?

On April 7, 2025, Simmons First National experienced a 1.81% drop in pre-market trading.

Simmons First National Corporation (NASDAQ:SFNC) reported its quarterly earnings on January 21st, with an earnings per share (EPS) of $0.39, exceeding expectations. However, over the past three years, the company's share price has declined by 27%, significantly underperforming the market return of around 15%. This downturn has been exacerbated in recent months, with a 16% drop in the last three months, mirroring the broader market's 16% decline.

The company's EPS has decreased at a compound annual rate of 21% over the past three years, outpacing the 10% compound annual decline in share price. This suggests that despite recent setbacks, investors may be optimistic about future improvements. Additionally, the company's total shareholder return (TSR), which includes dividends, has been -18% over the last three years, slightly better than the share price return. This indicates that dividends have provided some support to shareholders.

Despite the recent losses, long-term investors in Simmons First National have seen an average annual return of 3% over the past five years. This perspective highlights that the recent downturn may be a temporary setback rather than a long-term trend. Investors should consider the broader context and potential future growth when evaluating the company's prospects.