U.S. Markets open in 5 hrs 13 mins
  • S&P Futures

    3,666.50
    -0.75 (-0.02%)
     
  • Dow Futures

    29,858.00
    -10.00 (-0.03%)
     
  • Nasdaq Futures

    12,480.25
    +26.00 (+0.21%)
     
  • Russell 2000 Futures

    1,836.40
    -1.10 (-0.06%)
     
  • Crude Oil

    45.42
    +0.14 (+0.31%)
     
  • Gold

    1,843.90
    +13.70 (+0.75%)
     
  • Silver

    24.29
    +0.21 (+0.87%)
     
  • EUR/USD

    1.2117
    +0.0001 (+0.0121%)
     
  • 10-Yr Bond

    0.9480
    0.0000 (0.00%)
     
  • Vix

    21.11
    +0.34 (+1.64%)
     
  • GBP/USD

    1.3408
    +0.0032 (+0.2387%)
     
  • USD/JPY

    104.2610
    -0.1630 (-0.1561%)
     
  • BTC-USD

    19,228.66
    +279.41 (+1.47%)
     
  • CMC Crypto 200

    377.30
    +12.39 (+3.39%)
     
  • FTSE 100

    6,467.82
    +4.43 (+0.07%)
     
  • Nikkei 225

    26,809.37
    +8.39 (+0.03%)
     

Results: Bankwell Financial Group, Inc. Beat Earnings Expectations And Analysts Now Have New Forecasts

Simply Wall St
·3 min read

Shareholders might have noticed that Bankwell Financial Group, Inc. (NASDAQ:BWFG) filed its quarterly result this time last week. The early response was not positive, with shares down 4.9% to US$15.69 in the past week. Revenues were US$14m, approximately in line with whatthe analysts expected, although statutory earnings per share (EPS) crushed expectations, coming in at US$0.38, an impressive 25% 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

View our latest analysis for Bankwell Financial Group

earnings-and-revenue-growth
earnings-and-revenue-growth

Following the latest results, Bankwell Financial Group's twin analysts are now forecasting revenues of US$61.4m in 2021. This would be a sizeable 24% improvement in sales compared to the last 12 months. Statutory earnings per share are predicted to soar 38% to US$1.58. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$61.9m and earnings per share (EPS) of US$1.61 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.

With the analysts reconfirming their revenue and earnings forecasts, it's surprising to see that the price target rose 8.6% to US$19.00. It looks as though they previously had some doubts over whether the business would live up to their expectations.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that Bankwell Financial Group's rate of growth is expected to accelerate meaningfully, with the forecast 24% revenue growth noticeably faster than its historical growth of 4.9%p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 1.1% next year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Bankwell Financial Group to grow faster than the wider 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. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

With that in mind, we wouldn't be too quick to come to a conclusion on Bankwell Financial Group. Long-term earnings power is much more important than next year's profits. At least one analyst has provided forecasts out to 2022, which can be seen for free on our platform here.

You still need to take note of risks, for example - Bankwell Financial Group has 2 warning signs we think you should be aware of.

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@simplywallst.com.