Dime Community Bancshares, Inc. Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year
A week ago, Dime Community Bancshares, Inc. (NASDAQ:DCOM) came out with a strong set of second-quarter numbers that could potentially lead to a re-rate of the stock. It was overall a positive result, with revenues beating expectations by 2.0% to hit US$91m. Dime Community Bancshares reported statutory earnings per share (EPS) US$0.66, which was a notable 10% above what the analysts had forecast. 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.
See our latest analysis for Dime Community Bancshares
Taking into account the latest results, the five analysts covering Dime Community Bancshares provided consensus estimates of US$361.4m revenue in 2023, which would reflect a chunky 9.0% decline over the past 12 months. Statutory earnings per share are expected to plummet 24% to US$2.64 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$359.5m and earnings per share (EPS) of US$2.55 in 2023. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.
The consensus price target rose 9.4% to US$25.50, suggesting that higher earnings estimates flow through to the stock's valuation as well. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Dime Community Bancshares at US$27.00 per share, while the most bearish prices it at US$23.50. This is a very narrow spread of estimates, implying either that Dime Community Bancshares is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 17% by the end of 2023. This indicates a significant reduction from annual growth of 27% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 4.3% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Dime Community Bancshares is expected to lag 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 Dime Community Bancshares following these results. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Dime Community Bancshares' revenue is expected to perform worse than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.
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. At Simply Wall St, we have a full range of analyst estimates for Dime Community Bancshares going out to 2024, 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 Dime Community Bancshares that you should be aware of.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
