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Northfield Bancorp, Inc. (Staten Island, NY) Just Beat EPS By 9.7%: Here's What Analysts Think Will Happen Next

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Simply Wall St
·4 min read
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As you might know, Northfield Bancorp, Inc. (Staten Island, NY) (NASDAQ:NFBK) just kicked off its latest yearly results with some very strong numbers. The company beat expectations with revenues of US$129m arriving 2.2% ahead of forecasts. Statutory earnings per share (EPS) were US$0.76, 9.7% ahead of estimates. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Northfield Bancorp (Staten Island NY) after the latest results.

View our latest analysis for Northfield Bancorp (Staten Island NY)

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After the latest results, the four analysts covering Northfield Bancorp (Staten Island NY) are now predicting revenues of US$137.6m in 2021. If met, this would reflect a reasonable 7.0% improvement in sales compared to the last 12 months. Statutory earnings per share are predicted to jump 20% to US$0.91. Before this earnings report, the analysts had been forecasting revenues of US$135.8m and earnings per share (EPS) of US$0.88 in 2021. So the consensus seems to have become somewhat more optimistic on Northfield Bancorp (Staten Island NY)'s earnings potential following these results.

The consensus price target was unchanged at US$14.38, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. 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. The most optimistic Northfield Bancorp (Staten Island NY) analyst has a price target of US$16.00 per share, while the most pessimistic values it at US$13.00. This is a very narrow spread of estimates, implying either that Northfield Bancorp (Staten Island NY) is an easy company to value, or - more likely - the analysts are relying heavily on some key 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. The analysts are definitely expecting Northfield Bancorp (Staten Island NY)'s growth to accelerate, with the forecast 7.0% growth ranking favourably alongside historical growth of 4.5% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue shrink 2.9% per year. So it's clear with the acceleration in growth, Northfield Bancorp (Staten Island NY) is expected to grow meaningfully faster than 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 Northfield Bancorp (Staten Island NY) following these results. Fortunately, they also reconfirmed their revenue estimates, suggesting sales are tracking in line with expectations. Their estimates also suggest that Northfield Bancorp (Staten Island NY)'s revenues are expected to perform better 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.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Northfield Bancorp (Staten Island NY) analysts - going out to 2022, and you can see them free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 2 warning signs with Northfield Bancorp (Staten Island NY) , and understanding these should be part of your investment process.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.