shareholders of Kemun Financial Co., Ltd. (NASDAQ:CHMG) should be happy this week, as its stock price rose 10% to US$43.50 following its latest quarterly results. Sales were US$24 million, roughly in line with analyst expectations, but statutory earnings per share (EPS) were lower than expected, coming in at US$1.48, 42% higher than expected. Earnings earnings are an important time for investors as they can track a company's performance, see what analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We've gathered the latest statutory forecasts to see if the analysts have changed their earnings model following these results.
Check out our latest analysis for Chemung Financial.
Following last week's earnings report, Chemung Financial's three analysts are now forecasting sales of US$96.7m in 2024, about the same as the previous 12 months. Statutory earnings per share are expected to decline 4.3% to $4.99 over the same period. Prior to this earnings report, analysts were forecasting his 2024 sales of US$98.6m and earnings per share (EPS) of US$4.69. Analysts appear to be more bullish on the business, judging by the new earnings per share estimates.
There was no significant change to the consensus price target of $50.00, suggesting that the improved earnings per share outlook alone is not enough to have a long-term positive impact on the stock's valuation. However, it is unwise to stick to a single price target, as the consensus target is effectively an average of analyst price targets. As a result, some investors like to look at a range of estimates to see if there is any disagreement regarding a company's valuation. Currently, the most bullish analyst values Chemung Financial at $54.00 per share, while the most bearish values it at $45.00. Still, the analysts seem fairly confident in their valuations, as the estimates are grouped relatively close together, indicating that Chemung Financial is an easy company to predict. It suggests that you are using assumptions.
You can also look at the bigger picture, including how these forecasts compare to past performance and whether forecasts are more or less bullish compared to other companies in its industry. We would like to highlight that Chemung Financial's revenue growth is expected to slow, with an expected annual growth rate of 0.4% to the end of 2024, which is significantly lower than the historic annual growth rate of 6.2% over the past five years. I think. For comparison, other companies in the industry that are covered by analysts are expected to grow their revenue at 5.8% per year. So it's clear that while revenue growth is expected to slow, the broader industry is expected to grow faster than Chemung Financial.
conclusion
Most importantly, the analysts have revised their earnings per share estimates upwards, suggesting a clear increase in optimism for Chemung Financial following these results. Happily, the analysts also reaffirmed their earnings forecasts, suggesting things are in line with expectations. However, our data suggests that Chemung Financial's earnings are expected to perform worse than the broader industry. The consensus price target remains unchanged at US$50.00, and the latest forecast is not significant enough to impact the target price.
With that in mind, we probably won't be able to quickly draw any conclusions about Chemung Financial. Long-term profitability is far more important than next year's profits. Chemung Financial's multiple analyst forecasts to 2025 are available for free on our platform.
Here we also provide an overview of the Chemung Financial Board and CEO's compensation and tenure at the company, as well as whether insiders have been buying shares.
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This article by Simply Wall St is general in nature. We provide commentary using only unbiased methodologies, based on historical data and analyst forecasts, and articles are not intended to be financial advice. This is not a recommendation to buy or sell any stock, and does not take into account your objectives or financial situation. We aim to provide long-term, focused analysis based on fundamental data. Note that our analysis may not factor in the latest announcements or qualitative material from price-sensitive companies. Simply Wall St has no position in any stocks mentioned.
