Results: Bridge Bancorp, Inc. Exceeded Expectations And The Consensus Has Updated Its Estimates

By
Simply Wall St
Published
October 27, 2019
NasdaqGS:BDGE

Bridge Bancorp, Inc. (NASDAQ:BDGE) defied analyst predictions to release its quarterly results, which were ahead of market expectations. The company beat expectations with revenues of US$43m arriving 2.9% ahead of forecasts. Earnings per share (EPS) were US$0.70, 6.4% ahead of estimates. Following the result, 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. Readers will be glad to know we've aggregated the latest forecasts to see whether analysts have changed their mind on Bridge Bancorp after the latest results.

View our latest analysis for Bridge Bancorp

NasdaqGS:BDGE Past and Future Earnings, October 27th 2019
NasdaqGS:BDGE Past and Future Earnings, October 27th 2019

Following the latest results, Bridge Bancorp's four analysts are now forecasting revenues of US$178m in 2020. This would be a meaningful 13% improvement in sales compared to the last 12 months. Earnings per share are expected to accumulate 5.4% to US$2.72. In the lead-up to this report, analysts had been modelling revenues of US$176m and earnings per share (EPS) of US$2.70 in 2020. 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.

Analysts reconfirmed their price target of US$32.70, 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. Currently, the most bullish analyst values Bridge Bancorp at US$34.00 per share, while the most bearish prices it at US$30.50. Still, with such a tight range of estimates, it suggests analysts have a pretty good idea of what they think the company is worth.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. Next year brings more of the same, according to analysts, with revenue forecast to grow 13%, in line with its 13% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 2.2% per year. So it's pretty clear that Bridge Bancorp is forecast to grow substantially faster than its market.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with analysts reconfirming that earnings per share are expected to continue performing in line with their prior expectations. Fortunately, analysts also reconfirmed their revenue estimates, suggesting sales are tracking in line with expectations - and our data does suggest that Bridge Bancorp's revenues are expected to grow faster than the wider market. The consensus price target held steady at US$32.70, with the latest estimates not enough to have an impact on analysts' estimated valuations.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Bridge Bancorp going out to 2021, and you can see them free on our platform here..

You can also see whether Bridge Bancorp is carrying too much debt, and whether its balance sheet is healthy, for free on our platform here.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.

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