雅虎香港財經 Bridgewater Bancshares, Inc. (NASDAQ:BWB) Just Reported Earnings, And Analysts Cut Their Target Price
Bridgewater Bancshares, Inc. (NASDAQ:BWB) missed earnings with its latest quarterly results, disappointing overly-optimistic forecasters. Results look to have been somewhat negative - revenue fell 4.8% short of analyst estimates at US$25m, and statutory earnings of US$0.24 per share missed forecasts by 2.7%. 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 Bridgewater Bancshares after the latest results.
See our latest analysis for Bridgewater Bancshares
Taking into account the latest results, Bridgewater Bancshares' three analysts currently expect revenues in 2024 to be US$107.0m, approximately in line with the last 12 months. Statutory earnings per share are forecast to descend 14% to US$1.00 in the same period. Before this earnings report, the analysts had been forecasting revenues of US$110.0m and earnings per share (EPS) of US$1.06 in 2024. The analysts are less bullish than they were before these results, given the reduced revenue forecasts and the minor downgrade to earnings per share expectations.
It'll come as no surprise then, to learn that the analysts have cut their price target 5.6% to US$14.00.
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 0.9% by the end of 2024. This indicates a significant reduction from annual growth of 14% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 5.7% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Bridgewater Bancshares is expected to lag the wider industry.
The Bottom Line
The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Bridgewater Bancshares' future valuation.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Bridgewater Bancshares going out to 2025, and you can see them free on our platform here..
However, before you get too enthused, we've discovered 1 warning sign for Bridgewater Bancshares that you should be aware of.
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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.
