Veritex Holdings, Inc. (NASDAQ:VBTX) Just Reported Full-Year Earnings: Have Analysts Changed Their Mind On The Stock?
Veritex Holdings, Inc. (NASDAQ:VBTX) just released its full-year report and things are looking bullish. Results were good overall, with revenues beating analyst predictions by 2.8% to hit US$344m. Statutory earnings per share (EPS) came in at US$2.77, some 3.7% above whatthe analysts had expected. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
See our latest analysis for Veritex Holdings
Taking into account the latest results, the current consensus from Veritex Holdings' six analysts is for revenues of US$400.5m in 2022, which would reflect a solid 16% increase on its sales over the past 12 months. Statutory earnings per share are predicted to ascend 10% to US$3.11. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$392.5m and earnings per share (EPS) of US$3.10 in 2022. There doesn't appear to have been a major change in sentiment following the results, other than the small increase to revenue estimates.
It may not be a surprise to see thatthe analysts have reconfirmed their price target of US$48.50, implying that the uplift in sales is not expected to greatly contribute to Veritex Holdings's valuation in the near term. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Veritex Holdings at US$49.00 per share, while the most bearish prices it at US$46.00. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.
Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Veritex Holdings' revenue growth is expected to slow, with the forecast 16% annualised growth rate until the end of 2022 being well below the historical 35% 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) 4.9% per year. Even after the forecast slowdown in growth, it seems obvious that Veritex Holdings is also expected 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, they also upgraded their revenue estimates, and are forecasting revenues to grow faster 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.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Veritex Holdings analysts - going out to 2023, and you can see them free on our platform here.
Before you take the next step you should know about the 2 warning signs for Veritex Holdings that we have uncovered.
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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.
