Yahoo Finance Time To Worry? Analysts Just Downgraded Their Shore Bancshares, Inc. (NASDAQ:SHBI) Outlook
Market forces rained on the parade of Shore Bancshares, Inc. (NASDAQ:SHBI) shareholders today, when the analysts downgraded their forecasts for this year. Revenue estimates were cut sharply as the analysts signalled a weaker outlook - perhaps a sign that investors should temper their expectations as well.
Following the downgrade, the most recent consensus for Shore Bancshares from its two analysts is for revenues of US$106m in 2022 which, if met, would be a major 35% increase on its sales over the past 12 months. Prior to the latest estimates, the analysts were forecasting revenues of US$117m in 2022. It looks like forecasts have become a fair bit less optimistic on Shore Bancshares, given the substantial drop in revenue estimates.
Check out our latest analysis for Shore Bancshares
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. It's clear from the latest estimates that Shore Bancshares' rate of growth is expected to accelerate meaningfully, with the forecast 35% annualised revenue growth to the end of 2022 noticeably faster than its historical growth of 5.3% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 5.6% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Shore Bancshares to grow faster than the wider industry.
The Bottom Line
The clear low-light was that analysts slashing their revenue forecasts for Shore Bancshares this year. They're also forecasting more rapid revenue growth than the wider market. Overall, given the drastic downgrade to this year's forecasts, we'd be feeling a little more wary of Shore Bancshares going forwards.
As you can see, the analysts clearly aren't bullish, and there might be good reason for that. We've identified some potential issues with Shore Bancshares' financials, such as major dilution from new stock issuance in the past year. For more information, you can click here to discover this and the 2 other warning signs we've identified.
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.
