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Last week, you might have seen that CBTX, Inc. (NASDAQ:CBTX) released its full-year result to the market. The early response was not positive, with shares down 8.3% to US$26.32 in the past week. Revenues missed the mark, coming in 14% below forecasts, at US$123m. Statutory profits were better overall though, with per-share profits of US$1.06 being a notable 16% above what the analysts were modelling. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Following the latest results, CBTX's three analysts are now forecasting revenues of US$140.0m in 2021. This would be a solid 14% improvement in sales compared to the last 12 months. Per-share earnings are expected to step up 19% to US$1.38. Before this earnings report, the analysts had been forecasting revenues of US$140.3m and earnings per share (EPS) of US$1.23 in 2021. There was no real change to the revenue estimates, but the analysts do seem more bullish on earnings, given the decent improvement in earnings per share expectations following these results.
There's been no major changes to the consensus price target of US$28.00, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic CBTX analyst has a price target of US$29.00 per share, while the most pessimistic values it at US$25.00. 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.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's clear from the latest estimates that CBTX's rate of growth is expected to accelerate meaningfully, with the forecast 14% revenue growth noticeably faster than its historical growth of 6.0%p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 6.5% next year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect CBTX 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 CBTX 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 CBTX analysts - going out to 2022, and you can see them free on our platform here.
You still need to take note of risks, for example - CBTX has 3 warning signs we think 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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