MetroCity Bankshares, Inc. Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year
MetroCity Bankshares, Inc. (NASDAQ:MCBS) just released its latest first-quarter results and things are looking bullish. It was a solid earnings report, with revenues and statutory earnings per share (EPS) both coming in strong. Revenues were 13% higher than the analysts had forecast, at US$30m, while EPS were US$0.50 beating analyst models by 22%. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
Check out our latest analysis for MetroCity Bankshares
After the latest results, the three analysts covering MetroCity Bankshares are now predicting revenues of US$110.3m in 2021. If met, this would reflect a decent 16% improvement in sales compared to the last 12 months. Per-share earnings are expected to ascend 15% to US$1.78. Before this earnings report, the analysts had been forecasting revenues of US$110.3m and earnings per share (EPS) of US$1.78 in 2021. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
It will come as no surprise then, to learn that the consensus price target is largely unchanged at US$18.25. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic MetroCity Bankshares analyst has a price target of US$19.00 per share, while the most pessimistic values it at US$16.50. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting MetroCity Bankshares is an easy business to forecast or the the analysts are all using similar assumptions.
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 clear from the latest estimates that MetroCity Bankshares' rate of growth is expected to accelerate meaningfully, with the forecast 22% annualised revenue growth to the end of 2021 noticeably faster than its historical growth of 12% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 3.8% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that MetroCity Bankshares is expected to grow much faster than its industry.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, they also reconfirmed their revenue numbers, suggesting sales are tracking in line with expectations - and our data suggests that revenues are expected to grow faster than the wider industry. The consensus price target held steady at US$18.25, with the latest estimates not enough to have an impact on their price targets.
With that in mind, we wouldn't be too quick to come to a conclusion on MetroCity Bankshares. Long-term earnings power is much more important than next year's profits. We have forecasts for MetroCity Bankshares going out to 2022, and you can see them free on our platform here.
And what about risks? Every company has them, and we've spotted 2 warning signs for MetroCity Bankshares you should know about.
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. 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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