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Analysts Just Made A Major Revision To Their National Bank Holdings Corporation (NYSE:NBHC) Revenue Forecasts

Simply Wall St
·3 min read

The latest analyst coverage could presage a bad day for National Bank Holdings Corporation (NYSE:NBHC), with the analysts making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. This report focused on revenue estimates, and it looks as though the consensus view of the business has become substantially more conservative.

Following the downgrade, the latest consensus from National Bank Holdings' three analysts is for revenues of US$311m in 2021, which would reflect an okay 2.3% improvement in sales compared to the last 12 months. Statutory earnings per share are supposed to descend 16% to US$2.19 in the same period. Before this latest update, the analysts had been forecasting revenues of US$309m and earnings per share (EPS) of US$2.31 in 2021. The forecasts seem to have become a little more negative on the business after the recent consensus updates, given the small dip in their earnings per share forecasts for next year.

View our latest analysis for National Bank Holdings

earnings-and-revenue-growth
earnings-and-revenue-growth

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's pretty clear that there is an expectation that National Bank Holdings' revenue growth will slow down substantially, with revenues next year expected to grow 2.3%, compared to a historical growth rate of 15% 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 1.7% next year. Even after the forecast slowdown in growth, it seems obvious that National Bank Holdings is also expected to grow faster than the wider industry.

The Bottom Line

The biggest issue in the new estimates is that analysts have reduced their earnings per share estimates, suggesting business headwinds lay ahead for National Bank Holdings. On the plus side, there were no major changes to revenue estimates; although analyst forecasts do imply revenues will come in ahead of the wider market. Given the stark change in sentiment, we'd understand if investors became more cautious on National Bank Holdings after today.

As you can see, the analysts clearly aren't bullish, and there might be good reason for that. We've identified some potential issues with National Bank Holdings' financials, such as recent substantial insider selling. Learn more, and discover the 3 other warning signs we've identified, for free on our platform here.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are downgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.

This article by Simply Wall St is general in nature. 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.