The quarterly results for The Bank of Princeton (NASDAQ:BPRN) were released last week, making it a good time to revisit its performance. Results look mixed – while revenue fell marginally short of analyst estimates at US$11m, earnings beat expectations 3.8%, with Bank of Princeton reporting profits of US$0.54 per share. Earnings are an important time for investors, as they can track a company’s performance, look at what top analysts are forecasting for next year, and see if there’s been a change in sentiment towards the company. Readers will be glad to know we’ve aggregated the latest forecasts to see whether analysts have changed their mind on Bank of Princeton after the latest results.
See our latest analysis for Bank of Princeton
Taking into account the latest results, the latest consensus from Bank of Princeton’s three analysts is for revenues of US$47m in 2020, which would reflect a decent 18% improvement in sales compared to the last 12 months. Earnings per share are expected to jump 35% to US$2.12. Yet prior to the latest earnings, analysts had been forecasting revenues of US$48m and earnings per share (EPS) of US$2.28 in 2020. Analysts are less bullish than they were before these results, given the reduced revenue forecasts and the small dip in earnings per share expectations.
It’ll come as no surprise then, to learn that analysts have cut their price target 6.4% to US$29.25. 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. The most optimistic Bank of Princeton analyst has a price target of US$30.50 per share, while the most pessimistic values it at US$28.00. The narrow spread of estimates could suggest that the business’ future is relatively easy to value, or that analysts have a clear view on its prospects.
Zooming out to look at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up both against past performance, and against industry growth estimates. Analysts are definitely expecting Bank of Princeton’s growth to accelerate, with the forecast 18% growth ranking favourably alongside historical growth of 3.1% per annum over the past five years. Compare this with other companies in the same market, which are forecast to grow their revenue 2.3% next year. It seems obvious that, while the growth outlook is brighter than the recent past, analysts also expect Bank of Princeton to grow faster than the wider market.
The Bottom Line
The most important thing to take away is that analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Unfortunately analysts also downgraded their revenue estimates, although industry data suggests that Bank of Princeton’s revenues are expected to grow faster than the wider market. The consensus price target fell measurably, with analysts seemingly not reassured by the latest results, leading to a lower estimate of Bank of Princeton’s future valuation.
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 Bank of Princeton going out to 2020, and you can see them free on our platform here..
We also provide an overview of the Bank of Princeton Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
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