Yahoo Finance Broker Revenue Forecasts For Home Bancorp, Inc. (NASDAQ:HBCP) Are Surging Higher
Home Bancorp, Inc. (NASDAQ:HBCP) shareholders will have a reason to smile today, with the analysts making substantial upgrades to next year's statutory forecasts. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects.
Following the upgrade, the consensus from four analysts covering Home Bancorp is for revenues of US$103m in 2022, implying a chunky 17% decline in sales compared to the last 12 months. Statutory earnings per share are anticipated to dive 38% to US$3.54 in the same period. Before this latest update, the analysts had been forecasting revenues of US$93m and earnings per share (EPS) of US$3.57 in 2022. There's clearly been a surge in bullishness around the company's sales pipeline, even if there's no real change in earnings per share forecasts.
Check out our latest analysis for Home Bancorp
The consensus price target increased 5.3% to US$46.67, with an improved revenue forecast carrying the promise of a more valuable business, in time. 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. The most optimistic Home Bancorp analyst has a price target of US$47.00 per share, while the most pessimistic values it at US$40.00. This is a very narrow spread of estimates, implying either that Home Bancorp is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that sales are expected to reverse, with a forecast 14% annualised revenue decline to the end of 2022. That is a notable change from historical growth of 9.1% over the last five years. Yet aggregate analyst estimates for other companies in the industry suggest that industry revenues are forecast to decline 0.7% per year. So it's pretty clear that Home Bancorp's revenues are expected to shrink 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 analysts reconfirming that earnings per share are expected to continue performing in line with their prior expectations. Notably, analysts also upgraded their revenue estimates, with sales performing well although Home Bancorp's revenue growth is expected to trail that of the wider market. There was also a nice increase in the price target, with analysts apparently feeling that the intrinsic value of the business is improving. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at Home Bancorp.
Still, the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Home Bancorp analysts - going out to 2023, and you can see them free on our platform here.
Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies that insiders are buying.
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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.
