Analysts Are Updating Their BCB Bancorp, Inc. (NASDAQ:BCBP) Estimates After Its Second-Quarter Results

It's been a good week for BCB Bancorp, Inc. (NASDAQ:BCBP) shareholders, because the company has just released its latest second-quarter results, and the shares gained 6.1% to US$18.64. The result was positive overall - although revenues of US$27m were in line with what the analysts predicted, BCB Bancorp surprised by delivering a statutory profit of US$0.58 per share, modestly greater than expected. 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.

Check out our latest analysis for BCB Bancorp

Taking into account the latest results, BCB Bancorp's three analysts currently expect revenues in 2022 to be US$109.1m, approximately in line with the last 12 months. Statutory earnings per share are predicted to grow 11% to US$2.50. In the lead-up to this report, the analysts had been modelling revenues of US$109.1m and earnings per share (EPS) of US$2.24 in 2022. Although the revenue estimates have not really changed, we can see there's been a solid gain to earnings per share expectations, suggesting that the analysts have become more bullish after the latest result.

The consensus price target was unchanged at US$20.00, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. 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 BCB Bancorp analyst has a price target of US$22.00 per share, while the most pessimistic values it at US$19.50. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that BCB Bancorp's revenue growth will slow down substantially, with revenues to the end of 2022 expected to display 1.1% growth on an annualised basis. This is compared to a historical growth rate of 9.6% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 7.7% annually. Factoring in the forecast slowdown in growth, it seems obvious that BCB Bancorp is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards BCB Bancorp following these results. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting sales are tracking in line with expectations - although our data does suggest that BCB Bancorp's revenues are expected to perform worse than the wider industry. The consensus price target held steady at US$20.00, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for BCB Bancorp going out to 2024, and you can see them free on our platform here..

Even so, be aware that BCB Bancorp is showing 1 warning sign in our investment analysis , you should know about...

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.