As you might know, Brookline Bancorp, Inc. (NASDAQ:BRKL) recently reported its quarterly numbers. The result was positive overall - although revenues of US$71m were in line with what the analysts predicted, Brookline Bancorp surprised by delivering a statutory profit of US$0.24 per share, modestly greater than expected. The 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
Taking into account the latest results, the consensus forecast from Brookline Bancorp's six analysts is for revenues of US$284.6m in 2021, which would reflect a sizeable 31% improvement in sales compared to the last 12 months. Statutory earnings per share are predicted to soar 62% to US$0.88. In the lead-up to this report, the analysts had been modelling revenues of US$282.0m and earnings per share (EPS) of US$0.86 in 2021. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.
The consensus price target was unchanged at US$11.50, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Brookline Bancorp, with the most bullish analyst valuing it at US$13.00 and the most bearish at US$10.50 per share. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Brookline Bancorp's past performance and to peers in the same industry. It's clear from the latest estimates that Brookline Bancorp's rate of growth is expected to accelerate meaningfully, with the forecast 31% revenue growth noticeably faster than its historical growth of 4.0%p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 1.1% next year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Brookline Bancorp to grow faster than the wider industry.
The Bottom Line
The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Brookline Bancorp following these results. Fortunately, they also reconfirmed their revenue numbers, suggesting sales are tracking in line with expectations - and our data suggests that revenues are expected to grow faster 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.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Brookline Bancorp analysts - going out to 2022, and you can see them free on our platform here.
Don't forget that there may still be risks. For instance, we've identified 1 warning sign for Brookline Bancorp that you should be aware of.
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.
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