Yahoo Finance CF Bankshares Inc. (NASDAQ:CFBK) Analysts Are Cutting Their Estimates: Here's What You Need To Know
CF Bankshares Inc. (NASDAQ:CFBK) last week reported its latest yearly results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. Results look mixed - while revenue fell marginally short of analyst estimates at US$51m, statutory earnings were in line with expectations, at US$2.78 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analyst is forecasting for next year, and see if there's been a change in sentiment towards the company. So we gathered the latest post-earnings forecasts to see what estimate suggests is in store for next year.
Check out our latest analysis for CF Bankshares
Taking into account the latest results, the current consensus from CF Bankshares' one analyst is for revenues of US$58.4m in 2023, which would reflect a decent 14% increase on its sales over the past 12 months. Statutory per-share earnings are expected to be US$2.78, roughly flat on the last 12 months. Before this earnings report, the analyst had been forecasting revenues of US$64.1m and earnings per share (EPS) of US$3.14 in 2023. The analyst seem less optimistic after the recent results, reducing their sales forecasts and making a substantial drop in earnings per share numbers.
The consensus price target fell 12% to US$22.00, with the weaker earnings outlook clearly leading valuation estimates.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's pretty clear that there is an expectation that CF Bankshares' revenue growth will slow down substantially, with revenues to the end of 2023 expected to display 14% growth on an annualised basis. This is compared to a historical growth rate of 25% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 6.8% annually. So it's pretty clear that, while CF Bankshares' revenue growth is expected to slow, it's still expected to grow faster than the industry itself.
The Bottom Line
The most important thing to take away is that the analyst downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. They also downgraded their revenue estimates, although industry data suggests that CF Bankshares' revenues are expected to grow faster than the wider industry. The consensus price target fell measurably, with the analyst seemingly not reassured by the latest results, leading to a lower estimate of CF Bankshares' future valuation.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At least one analyst has provided forecasts out to 2024, which can be seen for free on our platform here.
We also provide an overview of the CF Bankshares 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.
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