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PCB Bancorp (NASDAQ:PCB) came out with its third-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. It looks like a credible result overall - although revenues of US$25m were in line with what the analysts predicted, PCB Bancorp surprised by delivering a statutory profit of US$0.52 per share, a notable 16% above expectations. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
Check out our latest analysis for PCB Bancorp
After the latest results, the three analysts covering PCB Bancorp are now predicting revenues of US$109.2m in 2025. If met, this would reflect a decent 15% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to accumulate 7.3% to US$1.82. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$109.1m and earnings per share (EPS) of US$1.90 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.
Despite cutting their earnings forecasts,the analysts have lifted their price target 19% to US$20.00, suggesting that these impacts are not expected to weigh on the stock's value in the long term.
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 PCB Bancorp's rate of growth is expected to accelerate meaningfully, with the forecast 12% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 7.8% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 6.7% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect PCB Bancorp to grow faster than the wider industry.
The Bottom Line
The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.