Brookline Bancorp, Inc. (NASDAQ:BRKL) shares fell 2.8% to US$15.20 in the week since its latest annual results. Results look mixed - while revenue fell marginally short of analyst estimates at US$274m, statutory earnings were in line with expectations, at US$1.10 per share. Analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. With this in mind, we've gathered the latest statutory forecasts to see what analysts are expecting for next year.
Taking into account the latest results, the most recent consensus for Brookline Bancorp from five analysts is for revenues of US$281.6m in 2020, which is a modest 2.9% increase on its sales over the past 12 months. Statutory earnings per share are expected to accumulate 8.7% to US$1.20. Before this earnings report, analysts had been forecasting revenues of US$284.9m and earnings per share (EPS) of US$1.15 in 2020. Analysts seem to have become more bullish on the business, judging by their new earnings per share estimates.
Analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 6.3% to US$16.75. The consensus price target just an average of individual analyst targets, so - considering that the price target changed, it would be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Brookline Bancorp, with the most bullish analyst valuing it at US$17.00 and the most bearish at US$16.00 per share. Still, with such a tight range of estimates, it suggests analysts have a pretty good idea of what they think the company is worth.
In addition, we can look to Brookline Bancorp's past performance and see whether business is expected to improve, and if the company is expected to perform better than wider market. It's pretty clear that analysts expect Brookline Bancorp's revenue growth will slow down substantially, with revenues next year expected to grow 2.9%, compared to a historical growth rate of 7.6% over the past five years. By way of comparison, other companies in this market with analyst coverage, are forecast to grow their revenue at 5.0% per year. So it's pretty clear that, while revenue growth is expected to slow down, analysts still expect the wider market to grow faster than Brookline Bancorp.
The Bottom Line
The most important thing to take away from this is that analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Brookline Bancorp following these results. On the plus side, there were no major changes to revenue estimates; although analyst forecasts imply revenues will perform worse than the wider market. There was also a nice increase in the price target, with analysts feeling that the intrinsic value of the business is improving.
Still, the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for Brookline Bancorp going out to 2021, and you can see them free on our platform here.
You can also view our analysis of Brookline Bancorp's balance sheet, and whether we think Brookline Bancorp is carrying too much debt, for free on our platform here.
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