Yahoo Finance OP Bancorp Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next
OP Bancorp (NASDAQ:OPBK) defied analyst predictions to release its quarterly results, which were ahead of market expectations. It was overall a positive result, with revenues beating expectations by 3.5% to hit US$20m. OP Bancorp reported statutory earnings per share (EPS) US$0.34, which was a notable 19% above what the analysts had forecast. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on OP Bancorp after the latest results.
Check out our latest analysis for OP Bancorp
Following the latest results, OP Bancorp's twin analysts are now forecasting revenues of US$80.7m in 2024. This would be a reasonable 3.3% improvement in revenue compared to the last 12 months. Statutory earnings per share are forecast to decrease 8.0% to US$1.30 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$79.2m and earnings per share (EPS) of US$1.24 in 2024. So the consensus seems to have become somewhat more optimistic on OP Bancorp's earnings potential following these results.
The consensus price target was unchanged at US$12.25, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that OP Bancorp's revenue growth is expected to slow, with the forecast 4.4% annualised growth rate until the end of 2024 being well below the historical 14% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 5.7% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than OP Bancorp.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around OP Bancorp's earnings potential next year. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that OP Bancorp's revenue is expected to perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for OP Bancorp going out as far as 2025, and you can see them free on our platform here.
Before you take the next step you should know about the 1 warning sign for OP Bancorp that we have uncovered.
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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.
