Revenue Beat: CB Financial Services, Inc. Exceeded Revenue Forecasts By 17% And Analysts Are Updating Their Estimates
As you might know, CB Financial Services, Inc. (NASDAQ:CBFV) just kicked off its latest annual results with some very strong numbers. CB Financial Services beat expectations, with revenue hitting US$69m (17% ahead of estimates) and EPS reaching US$4.40 (a 7.8% beat). The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on CB Financial Services after the latest results.
See our latest analysis for CB Financial Services
After the latest results, the consensus from CB Financial Services' three analysts is for revenues of US$50.1m in 2024, which would reflect a stressful 27% decline in revenue compared to the last year of performance. Statutory earnings per share are forecast to tumble 49% to US$2.24 in the same period. In the lead-up to this report, the analysts had been modelling revenues of US$50.4m and earnings per share (EPS) of US$2.22 in 2024. 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.
There were no changes to revenue or earnings estimates or the price target of US$25.00, suggesting that the company has met expectations in its recent result. 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 CB Financial Services analyst has a price target of US$26.00 per share, while the most pessimistic values it at US$24.00. 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. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 27% by the end of 2024. This indicates a significant reduction from annual growth of 4.3% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 5.7% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - CB Financial Services is expected to lag 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. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at US$25.00, with the latest estimates not enough to have an impact on their price targets.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for CB Financial Services going out to 2025, and you can see them free on our platform here.
And what about risks? Every company has them, and we've spotted 1 warning sign for CB Financial Services you should know about.
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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.
