Analysts Just Made A Major Revision To Their Nicolet Bankshares, Inc. (NASDAQ:NCBS) Revenue Forecasts
Today is shaping up negative for Nicolet Bankshares, Inc. (NASDAQ:NCBS) shareholders, with the analysts delivering a substantial negative revision to this year's forecasts. This report focused on revenue estimates, and it looks as though the consensus view of the business has become substantially more conservative. What's more, Nicolet Bankshares has been out of favour with the market in recent times, so it will be interesting to see if this downgrade is enough to sink the stock even further. Shares are down 4.2% to US$77.72 over the past 7 days.
Following this downgrade, Nicolet Bankshares' five analysts are forecasting 2022 revenues to be US$233m, approximately in line with the last 12 months. Statutory earnings per share are presumed to bounce 41% to US$7.01. Before this latest update, the analysts had been forecasting revenues of US$260m and earnings per share (EPS) of US$7.02 in 2022. So there's been a clear change in analyst sentiment in the recent update, with the analysts making a substantial drop in revenues and reconfirming their earnings per share estimates.
See our latest analysis for Nicolet Bankshares
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that Nicolet Bankshares' revenue growth is expected to slow, with the forecast 2.3% annualised growth rate until the end of 2022 being well below the historical 13% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 7.4% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Nicolet Bankshares.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with analysts reconfirming that earnings per share are expected to continue performing in line with their prior expectations. Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales slower than the wider market. Overall, given the drastic downgrade to this year's forecasts, we'd be feeling a little more wary of Nicolet Bankshares going forwards.
Still, the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Nicolet Bankshares analysts - going out to 2023, and you can see them free on our platform here.
Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies that insiders are buying.
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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.
