Does Sierra Bancorp’s (NASDAQ:BSRR) 11.23% Earnings Growth Make It An Outperformer?
Analyzing Sierra Bancorp’s (NASDAQ:BSRR) track record of past performance is a valuable exercise for investors. It enables us to reflect on whether or not the company has met expectations, which is a powerful signal for future performance. Today I will assess BSRR’s recent performance announced on 31 December 2017 and compare these figures to its long-term trend and industry movements. See our latest analysis for Sierra Bancorp
Did BSRR’s recent earnings growth beat the long-term trend and the industry?
I look at the ‘latest twelve-month’ data, which annualizes the most recent half-year data, or in some cases, the latest annual report is already the most recent financial year data. This blend allows me to analyze different companies on a more comparable basis, using the latest information. For Sierra Bancorp, its latest earnings (trailing twelve month) is US$19.54M, which compared to the prior year’s figure, has increased by 11.23%. Given that these figures are fairly nearsighted, I have determined an annualized five-year value for Sierra Bancorp’s earnings, which stands at US$13.80M This means that, generally, Sierra Bancorp has been able to gradually raise its net income over the past couple of years as well.
How has it been able to do this? Well, let’s take a look at whether it is merely because of industry tailwinds, or if Sierra Bancorp has seen some company-specific growth. Over the past couple of years, Sierra Bancorp grew its bottom line faster than revenue by effectively controlling its costs. This has led to a margin expansion and profitability over time. Viewing growth from a sector-level, the US banks industry has been growing, albeit, at a subdued single-digit rate of 3.38% in the past year, and 8.11% over the past five years. This means any recent headwind the industry is enduring, Sierra Bancorp is relatively better-cushioned than its peers.
What does this mean?
Sierra Bancorp’s track record can be a valuable insight into its earnings performance, but it certainly doesn’t tell the whole story. Companies that have performed well in the past, such as Sierra Bancorp gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. I recommend you continue to research Sierra Bancorp to get a more holistic view of the stock by looking at:
Future Outlook: What are well-informed industry analysts predicting for BSRR’s future growth? Take a look at our free research report of analyst consensus for BSRR’s outlook.
Financial Health: Is BSRR’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.
Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.
NB: Figures in this article are calculated using data from the trailing twelve months from 31 December 2017. This may not be consistent with full year annual report figures.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.
