Capital City Bank Group, Inc. (NASDAQ:CCBG) came out with its first-quarter results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. Revenues were US$54m, approximately in line with whatthe analysts expected, although statutory earnings per share (EPS) crushed expectations, coming in at US$0.56, an impressive 27% ahead of estimates. 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. NasdaqGS:CCBG Earnings and Revenue Growth April 29th 2021
Taking into account the latest results, Capital City Bank Group’s four analysts currently expect revenues in 2021 to be US$225.3m, approximately in line with the last 12 months. Statutory per-share earnings are expected to be US$2.23, roughly flat on the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$213.0m and earnings per share (EPS) of US$1.69 in 2021. So it seems there’s been a definite increase in optimism about Capital City Bank Group’s future following the latest results, with a considerable lift to the earnings per share forecasts in particular.
Althoughthe analysts have upgraded their earnings estimates, there was no change to the consensus price target of US$27.05, suggesting that the forecast performance does not have a long term impact on the company’s valuation. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company’s valuation. The most optimistic Capital City Bank Group analyst has a price target of US$29.25 per share, while the most pessimistic values it at US$25.00. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that Capital City Bank Group’s revenue growth is expected to slow, with the forecast 2.1% annualised growth rate until the end of 2021 being well below the historical 9.8% p.a. growth over the last five years. …