The annual results for Capital City Bank Group, Inc. (NASDAQ:CCBG) were released last week, making it a good time to revisit its performance. Capital City Bank Group reported US$154m in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of US$1.83 beat expectations, being 2.5% higher than what analysts expected. Following the result, analysts have updated their earnings model, and it would be good to know whether they think there’s been a strong change in the company’s prospects, or if it’s business as usual. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
See our latest analysis for Capital City Bank Group
NasdaqGS:CCBG Past and Future Earnings, February 3rd 2020
Following the latest results, Capital City Bank Group’s five analysts are now forecasting revenues of US$164.7m in 2020. This would be a modest 6.7% improvement in sales compared to the last 12 months. Statutory per-share earnings are expected to be US$1.87, roughly flat on the last 12 months. Before this earnings report, analysts had been forecasting revenues of US$162.2m and earnings per share (EPS) of US$1.83 in 2020. So the consensus seems to have become somewhat more optimistic on Capital City Bank Group’s earnings potential following these results.
There’s been no major changes to the consensus price target of US$30.50, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock’s valuation. The consensus price target just an average of individual analyst targets, so – considering that the price target changed, it would be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Capital City Bank Group at US$31.00 per share, while the most bearish prices it at US$29.50. Still, with such a tight range of estimates, it suggests 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. Analysts are definitely expecting Capital City Bank Group’s growth to accelerate, with the forecast 6.7% growth ranking favourably alongside historical growth of 4.0% per annum over the past five years. Compare this with other companies in the same market, which are forecast to grow their revenue 4.9% next year. It seems obvious that, while the growth outlook is brighter than the recent past, analysts also expect Capital City Bank Group to grow faster than the wider market.
The Bottom Line
The biggest takeaway for us from these new estimates is that the consensus upgraded its earnings per share estimates, showing a clear improvement in sentiment around Capital City Bank Group’s earnings potential next year. Fortunately, analysts also reconfirmed their revenue estimates, suggesting sales are tracking in line with expectations – and our data does suggest that Capital City Bank Group’s revenues are expected to grow faster than the wider market. 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.
Still, the long-term prospects of the business are much more relevant than next year’s earnings. We have forecasts for Capital City Bank Group going out to 2021, and you can see them free on our platform here.
Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.
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