Camden National Corporation Annual Results: Here's What Analysts Are Forecasting For Next Year
It's been a good week for Camden National Corporation (NASDAQ:CAC) shareholders, because the company has just released its latest yearly results, and the shares gained 2.8% to US$47.61. Camden National reported US$167m in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of US$3.69 beat expectations, being 2.7% higher than what analysts expected. Following the result, 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 analysts have changed their mind on Camden National after the latest results.
View our latest analysis for Camden National
Following last week's earnings report, Camden National's three analysts are forecasting 2020 revenues to be US$169.8m, approximately in line with the last 12 months. Statutory earnings per share are expected to dip 8.1% to US$3.40 in the same period. Yet prior to the latest earnings, analysts had been forecasting revenues of US$167.6m and earnings per share (EPS) of US$3.40 in 2020. So it's pretty clear that, although analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
There were no changes to revenue or earnings estimates or the price target of US$46.50, suggesting that the company has met expectations in its recent result. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Camden National, with the most bullish analyst valuing it at US$48.00 and the most bearish at US$45.00 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.
Another way to assess these estimates is by comparing them to past performance, and seeing whether analysts are more or less bullish relative to other companies in the market. It's pretty clear that analysts expect Camden National's revenue growth will slow down substantially, with revenues next year expected to grow 1.8%, compared to a historical growth rate of 10% over the past five years. Compare this against other companies (with analyst forecasts) in the market, which are in aggregate expected to see revenue growth of 5.1% next 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 Camden National.
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. On the plus side, there were no major changes to revenue estimates; although analyst forecasts imply revenues will perform worse than the wider market. The consensus price target held steady at US$46.50, with the latest estimates not enough to have an impact on analysts' estimated valuations.
Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. We have estimates - from multiple Camden National analysts - going out to 2021, and you can see them free on our platform here.
You can also see whether Camden National is carrying too much debt, and whether its balance sheet is healthy, for free on our platform here.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned.
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