U.S. Markets open in 6 hrs 32 mins

Results: Metropolitan Bank Holding Corp. Exceeded Expectations And The Consensus Has Updated Its Estimates

  • Oops!
    Something went wrong.
    Please try again later.
Simply Wall St
·3 min read
  • Oops!
    Something went wrong.
    Please try again later.

Metropolitan Bank Holding Corp. (NYSE:MCB) last week reported its latest quarterly results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. Revenues were US$36m, approximately in line with whatthe analysts expected, although statutory earnings per share (EPS) crushed expectations, coming in at US$1.27, an impressive 30% 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Check out our latest analysis for Metropolitan Bank Holding

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

Taking into account the latest results, the current consensus from Metropolitan Bank Holding's two analysts is for revenues of US$153.9m in 2021, which would reflect a major 22% increase on its sales over the past 12 months. Statutory earnings per share are expected to shrink 3.0% to US$4.15 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$153.9m and earnings per share (EPS) of US$4.15 in 2021. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

With no major changes to earnings forecasts, the consensus price target fell 5.2% to US$36.50, suggesting that the analysts might have previously been hoping for an earnings upgrade.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Metropolitan Bank Holding's revenue growth is expected to slow, with forecast 22% increase next year well below the historical 30%p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 1.4% next year. Even after the forecast slowdown in growth, it seems obvious that Metropolitan Bank Holding is also expected to grow faster than the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Metropolitan Bank Holding's future valuation.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have analyst estimates for Metropolitan Bank Holding going out as far as 2022, and you can see them free on our platform here.

We also provide an overview of the Metropolitan Bank Holding Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

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.