TowneBank (NASDAQ:TOWN) Annual Results Just Came Out: Here's What Analysts Are Forecasting For This Year
Last week, you might have seen that TowneBank (NASDAQ:TOWN) released its full-year result to the market. The early response was not positive, with shares down 2.5% to US$31.12 in the past week. It was a workmanlike result, with revenues of US$697m coming in 2.7% ahead of expectations, and statutory earnings per share of US$2.97, in line with analyst appraisals. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Check out our latest analysis for TowneBank
Following the recent earnings report, the consensus from four analysts covering TowneBank is for revenues of US$645.8m in 2022, implying a noticeable 7.4% decline in sales compared to the last 12 months. Statutory earnings per share are forecast to crater 22% to US$2.34 in the same period. Before this earnings report, the analysts had been forecasting revenues of US$645.8m and earnings per share (EPS) of US$2.34 in 2022. 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.
The analysts reconfirmed their price target of US$35.50, showing that the business is executing well and in line with expectations. 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. Currently, the most bullish analyst values TowneBank at US$36.00 per share, while the most bearish prices it at US$35.00. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.
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 sales are expected to slow, with a forecast annualised revenue decline of 7.4% by the end of 2022. This indicates a significant reduction from annual growth of 11% 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 4.8% annually for the foreseeable future. It's pretty clear that TowneBank's revenues are expected to perform substantially worse 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. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting sales are tracking in line with expectations - although our data does suggest that TowneBank's revenues are expected to perform worse than the wider industry. The consensus price target held steady at US$35.50, 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. At Simply Wall St, we have a full range of analyst estimates for TowneBank going out to 2023, and you can see them free on our platform here..
Even so, be aware that TowneBank is showing 2 warning signs in our investment analysis , and 1 of those is concerning...
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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.
