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New Forecasts: Here's What Analysts Think The Future Holds For The Bancorp, Inc. (NASDAQ:TBBK)

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Simply Wall St
·3 min read
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Celebrations may be in order for The Bancorp, Inc. (NASDAQ:TBBK) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects.

Following the latest upgrade, the current consensus, from the dual analysts covering Bancorp, is for revenues of US$167m in 2020, which would reflect a painful 29% reduction in Bancorp's sales over the past 12 months. Per-share earnings are expected to soar 40% to US$1.16. Before this latest update, the analysts had been forecasting revenues of US$149m and earnings per share (EPS) of US$1.13 in 2020. Sentiment certainly seems to have improved in recent times, with a decent improvement in revenue and a modest lift to earnings per share estimates.

View our latest analysis for Bancorp

NasdaqGS:TBBK Past and Future Earnings May 6th 2020
NasdaqGS:TBBK Past and Future Earnings May 6th 2020

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. These estimates imply that sales are expected to slow, with a forecast revenue decline of 29%, a significant reduction from annual growth of 12% 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 2.6% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Bancorp is expected to lag the wider industry.

The Bottom Line

The biggest takeaway for us from these new estimates is that analysts upgraded their earnings per share estimates, with improved earnings power expected for this year. Fortunately, they also upgraded their revenue estimates, and are forecasting revenues to grow slower than the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Bancorp.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for Bancorp going out as far as 2021, and you can see them free on our platform here.

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies that insiders are buying.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.