Yahoo Finance Community Trust Bancorp, Inc. (NASDAQ:CTBI) Beat Earnings, And Analysts Have Been Reviewing Their Forecasts
Community Trust Bancorp, Inc. (NASDAQ:CTBI) defied analyst predictions to release its first-quarter results, which were ahead of market expectations. Results were good overall, with revenues beating analyst predictions by 5.1% to hit US$59m. Statutory earnings per share (EPS) came in at US$1.04, some 5.8% above whatthe analysts had expected. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
View our latest analysis for Community Trust Bancorp
Taking into account the latest results, the consensus forecast from Community Trust Bancorp's three analysts is for revenues of US$237.3m in 2024. This reflects an okay 7.4% improvement in revenue compared to the last 12 months. Statutory earnings per share are expected to reduce 2.1% to US$4.20 in the same period. Before this earnings report, the analysts had been forecasting revenues of US$229.7m and earnings per share (EPS) of US$4.09 in 2024. So there seems to have been a moderate uplift in sentiment following the latest results, given the upgrades to both revenue and earnings per share forecasts for next year.
With these upgrades, we're not surprised to see that the analysts have lifted their price target 6.7% to US$48.00per share. 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. There are some variant perceptions on Community Trust Bancorp, with the most bullish analyst valuing it at US$49.00 and the most bearish at US$47.00 per share. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.
Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Community Trust Bancorp's growth to accelerate, with the forecast 10.0% annualised growth to the end of 2024 ranking favourably alongside historical growth of 5.0% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 5.8% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Community Trust Bancorp to grow faster than the wider industry.
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 Community Trust Bancorp following these results. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Community Trust Bancorp going out to 2025, and you can see them free on our platform here.
It might also be worth considering whether Community Trust Bancorp's debt load is appropriate, using our debt analysis tools on the Simply Wall St platform, 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.
