Chemung Financial Corporation Just Recorded A 13% EPS Beat: Here's What Analysts Are Forecasting Next
Chemung Financial Corporation (NASDAQ:CHMG) defied analyst predictions to release its first-quarter results, which were ahead of market expectations. Chemung Financial beat earnings, with revenues hitting US$25m, ahead of expectations, and statutory earnings per share outperforming analyst reckonings by a solid 13%. The analyst 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 analyst has changed their earnings models, following these results.
Check out our latest analysis for Chemung Financial
Taking into account the latest results, Chemung Financial's solitary analyst currently expect revenues in 2023 to be US$98.9m, approximately in line with the last 12 months. Yet prior to the latest earnings, the analyst had been anticipated revenues of US$101.1m and earnings per share (EPS) of US$5.44 in 2023. Overall, while there's been a minor downgrade to revenue estimates, the consensus now no longer provides an EPS estimate, suggesting that the market believes revenue is more important following the latest results.
Intriguingly,the analyst has cut their price target 6.6% to US$47.00 showing a clear decline in sentiment around Chemung Financial's valuation.
Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Chemung Financial's revenue growth is expected to slow, with the forecast 1.5% annualised growth rate until the end of 2023 being well below the historical 6.3% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 3.4% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Chemung Financial.
The Bottom Line
The most important thing to take away is that the analyst downgraded their revenue estimates for next year. Unfortunately, they also downgraded their revenue estimates, and our data indicates revenues are expected to perform worse than the wider industry. The consensus price target fell measurably, with the analyst seemingly not reassured by the latest results, leading to a lower estimate of Chemung Financial's future valuation.
We have estimates for Chemung Financial from one covering analyst, and you can see them free on our platform here.
Even so, be aware that Chemung Financial is showing 1 warning sign in our investment analysis , you should know about...
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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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