Last week, you might have seen that Seacoast Banking Corporation of Florida (NASDAQ:SBCF) released its third-quarter result to the market. The early response was not positive, with shares down 4.5% to US$20.18 in the past week. Revenues disappointed slightly, as sales of US$80m were 4.0% below what the analysts had predicted. Profits were a relative bright spot, with statutory per-share earnings of US$0.42 coming in 11% above what was anticipated. 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.
Taking into account the latest results, the most recent consensus for Seacoast Banking Corporation of Florida from six analysts is for revenues of US$324.6m in 2021 which, if met, would be a major 21% increase on its sales over the past 12 months. Statutory earnings per share are predicted to accumulate 3.0% to US$1.56. Before this earnings report, the analysts had been forecasting revenues of US$324.6m and earnings per share (EPS) of US$1.56 in 2021. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
It will come as no surprise then, to learn that the consensus price target is largely unchanged at US$23.33. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Seacoast Banking Corporation of Florida at US$25.00 per share, while the most bearish prices it at US$22.00. This is a very narrow spread of estimates, implying either that Seacoast Banking Corporation of Florida 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. It's clear from the latest estimates that Seacoast Banking Corporation of Florida's rate of growth is expected to accelerate meaningfully, with the forecast 21% revenue growth noticeably faster than its historical growth of 16%p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 1.3% next year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Seacoast Banking Corporation of Florida to grow 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 the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at US$23.33, with the latest estimates not enough to have an impact on their price targets.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Seacoast Banking Corporation of Florida going out to 2021, and you can see them free on our platform here.
Plus, you should also learn about the 1 warning sign we've spotted with Seacoast Banking Corporation of Florida .
This article by Simply Wall St is general in nature. 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.
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