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It's been a good week for California BanCorp. (NASDAQ:BCAL) shareholders, because the company has just released its latest quarterly results, and the shares gained 4.1% to US$14.62. Revenues were in line with expectations, at US$38m, while statutory losses ballooned to US$0.59 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are 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 estimates suggest is in store for next year.
See our latest analysis for California BanCorp
After the latest results, the three analysts covering California BanCorp are now predicting revenues of US$190.7m in 2025. If met, this would reflect a major 144% improvement in revenue compared to the last 12 months. Earnings are expected to improve, with California BanCorp forecast to report a statutory profit of US$1.79 per share. In the lead-up to this report, the analysts had been modelling revenues of US$190.4m and earnings per share (EPS) of US$1.76 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
The analysts reconfirmed their price target of US$17.67, showing that the business is executing well and in line with expectations. 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 California BanCorp analyst has a price target of US$18.00 per share, while the most pessimistic values it at US$17.00. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.
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. The analysts are definitely expecting California BanCorp's growth to accelerate, with the forecast 104% annualised growth to the end of 2025 ranking favourably alongside historical growth of 22% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 6.5% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect California BanCorp to grow faster than the wider industry.