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TowneBank (NASDAQ:TOWN) shareholders are probably feeling a little disappointed, since its shares fell 6.8% to US$32.53 in the week after its latest third-quarter results. Revenues came in 3.2% below expectations, at US$175m. Statutory earnings per share were relatively better off, with a per-share profit of US$0.57 being roughly in line with analyst estimates. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
See our latest analysis for TowneBank
Taking into account the latest results, the most recent consensus for TowneBank from four analysts is for revenues of US$799.9m in 2025. If met, it would imply a notable 19% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to bounce 31% to US$2.65. Before this earnings report, the analysts had been forecasting revenues of US$799.9m and earnings per share (EPS) of US$2.66 in 2025. 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.
The analysts reconfirmed their price target of US$37.25, showing that the business is executing well and in line with expectations. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on TowneBank, with the most bullish analyst valuing it at US$40.00 and the most bearish at US$36.00 per share. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.
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 clear from the latest estimates that TowneBank's rate of growth is expected to accelerate meaningfully, with the forecast 15% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 4.3% 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. Factoring in the forecast acceleration in revenue, it's pretty clear that TowneBank is expected to grow much faster than its industry.