Yahoo Finance Chemung Financial Corporation Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year
Shareholders of Chemung Financial Corporation (NASDAQ:CHMG) will be pleased this week, given that the stock price is up 10% to US$43.50 following its latest quarterly results. Revenues were US$24m, approximately in line with whatthe analysts expected, although statutory earnings per share (EPS) crushed expectations, coming in at US$1.48, an impressive 42% ahead of estimates. 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.
View our latest analysis for Chemung Financial
Following last week's earnings report, Chemung Financial's three analysts are forecasting 2024 revenues to be US$96.7m, approximately in line with the last 12 months. Statutory earnings per share are forecast to reduce 4.3% to US$4.99 in the same period. Before this earnings report, the analysts had been forecasting revenues of US$98.6m and earnings per share (EPS) of US$4.69 in 2024. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.
There's been no major changes to the consensus price target of US$50.00, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Chemung Financial at US$54.00 per share, while the most bearish prices it at US$45.00. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Chemung Financial is an easy business to forecast or the the analysts are all using similar 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 Chemung Financial's revenue growth is expected to slow, with the forecast 0.4% annualised growth rate until the end of 2024 being well below the historical 6.2% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 5.8% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Chemung Financial.
The Bottom Line
The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Chemung Financial following these results. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Chemung Financial's revenue is expected to perform worse than the wider industry. The consensus price target held steady at US$50.00, with the latest estimates not enough to have an impact on their price targets.
With that in mind, we wouldn't be too quick to come to a conclusion on Chemung Financial. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Chemung Financial analysts - going out to 2025, and you can see them free on our platform here.
We also provide an overview of the Chemung Financial Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.
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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.
