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Capital City Bank Group, Inc. (NASDAQ:CCBG) just released its latest yearly report and things are not looking great. Capital City Bank Group missed analyst forecasts, with revenues of US$203m and statutory earnings per share (EPS) of US$1.88, falling short by 4.8% and 2.1% respectively. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
Taking into account the latest results, the most recent consensus for Capital City Bank Group from four analysts is for revenues of US$214.8m in 2021 which, if met, would be an okay 5.9% increase on its sales over the past 12 months. Statutory earnings per share are expected to reduce 9.6% to US$1.70 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$208.5m and earnings per share (EPS) of US$1.71 in 2021. So it looks like there's been no major change in sentiment following the latest results, although the analysts have made a small lift in to revenue forecasts.
It may not be a surprise to see thatthe analysts have reconfirmed their price target of US$25.90, implying that the uplift in sales is not expected to greatly contribute to Capital City Bank Group's valuation in the near term. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Capital City Bank Group analyst has a price target of US$28.50 per share, while the most pessimistic values it at US$24.00. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Capital City Bank Group is an easy business to forecast or the the analysts are all using similar assumptions.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Capital City Bank Group's past performance and to peers in the same industry. It's pretty clear that there is an expectation that Capital City Bank Group's revenue growth will slow down substantially, with revenues next year expected to grow 5.9%, compared to a historical growth rate of 8.0% over the past five years. Compare this to the 693 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 6.3% per year. So it's pretty clear that, while Capital City Bank Group's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.
The Bottom Line
The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. There was also an upgrade to revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as 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.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Capital City Bank Group analysts - going out to 2022, and you can see them free on our platform here.
However, before you get too enthused, we've discovered 2 warning signs for Capital City Bank Group (1 makes us a bit uncomfortable!) 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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