The Macatawa Bank Corporation (NASDAQ:MCBC) Yearly Results Are Out And Analysts Have Published New Forecasts
The annual results for Macatawa Bank Corporation (NASDAQ:MCBC) were released last week, making it a good time to revisit its performance. Revenues of US$105m were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at US$1.26, missing estimates by 2.8%. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
See our latest analysis for Macatawa Bank
After the latest results, the three analysts covering Macatawa Bank are now predicting revenues of US$109.1m in 2024. If met, this would reflect an okay 3.6% improvement in revenue compared to the last 12 months. Statutory earnings per share are expected to dip 2.2% to US$1.23 in the same period. In the lead-up to this report, the analysts had been modelling revenues of US$108.0m and earnings per share (EPS) of US$1.18 in 2024. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.
The consensus price target was unchanged at US$11.83, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Macatawa Bank, with the most bullish analyst valuing it at US$12.50 and the most bearish at US$11.00 per share. 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 pretty clear that there is an expectation that Macatawa Bank's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 3.6% growth on an annualised basis. This is compared to a historical growth rate of 5.3% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 5.6% annually. Factoring in the forecast slowdown in growth, it seems obvious that Macatawa Bank is also expected to grow slower than other industry participants.
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 Macatawa Bank following these results. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse 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 forecasts for Macatawa Bank going out to 2025, and you can see them free on our platform here.
You can also see our analysis of Macatawa Bank's Board and CEO remuneration and experience, and whether company insiders have been buying stock.
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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.
