Analyst Estimates: Here's What Brokers Think Of MainStreet Bancshares, Inc. (NASDAQ:MNSB) After Its Third-Quarter Report
Last week saw the newest third-quarter earnings release from MainStreet Bancshares, Inc. (NASDAQ:MNSB), an important milestone in the company's journey to build a stronger business. Results were roughly in line with estimates, with revenues of US$20m and statutory earnings per share of US$0.77. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on MainStreet Bancshares after the latest results.
See our latest analysis for MainStreet Bancshares
Taking into account the latest results, MainStreet Bancshares' dual analysts currently expect revenues in 2024 to be US$82.7m, approximately in line with the last 12 months. Statutory earnings per share are expected to nosedive 38% to US$2.27 in the same period. In the lead-up to this report, the analysts had been modelling revenues of US$79.9m and earnings per share (EPS) of US$2.32 in 2024. So it's pretty clear consensus is mixed on MainStreet Bancshares after the latest results; whilethe analysts lifted revenue numbers, they also administered a minor downgrade to per-share earnings expectations.
There's been no major changes to the price target of US$25.75, suggesting that the impact of higher forecast revenue and lower earnings won't result in a meaningful change to the business' valuation.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's pretty clear that there is an expectation that MainStreet Bancshares' revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 1.6% growth on an annualised basis. This is compared to a historical growth rate of 19% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 4.3% per year. Factoring in the forecast slowdown in growth, it seems obvious that MainStreet Bancshares is also expected to grow slower than other industry participants.
The Bottom Line
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for MainStreet Bancshares. They also upgraded their revenue estimates for next year, even though it is expected to grow slower than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for MainStreet Bancshares going out as far as 2025, and you can see them free on our platform here.
Plus, you should also learn about the 2 warning signs we've spotted with MainStreet Bancshares (including 1 which is a bit concerning) .
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
