Bankwell Financial Group, Inc. Just Reported A Surprise Profit And Analysts Updated Their Estimates

Bankwell Financial Group, Inc. (NASDAQ:BWFG) last week reported its latest third-quarter results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. It looks like a credible result overall - although revenues of US$22m were what the analyst expected, Bankwell Financial Group surprised by delivering a statutory profit of US$0.24 per share, instead of the previously forecast loss. This is an important time for investors, as they can track a company's performance in its report, look at what expert is forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analyst has changed their mind on Bankwell Financial Group after the latest results.

See our latest analysis for Bankwell Financial Group

After the latest results, the sole analyst covering Bankwell Financial Group are now predicting revenues of US$95.9m in 2025. If met, this would reflect a major 33% improvement in revenue compared to the last 12 months. Per-share earnings are expected to soar 89% to US$3.56. Yet prior to the latest earnings, the analyst had been anticipated revenues of US$97.2m and earnings per share (EPS) of US$3.52 in 2025. So it's pretty clear that, although the analyst has updated their estimates, there's been no major change in expectations for the business following the latest results.

With the analyst reconfirming their revenue and earnings forecasts, it's surprising to see that the price target rose 5.9% to US$36.00. It looks as though they previously had some doubts over whether the business would live up to their expectations.

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. The analyst is definitely expecting Bankwell Financial Group's growth to accelerate, with the forecast 26% annualised growth to the end of 2025 ranking favourably alongside historical growth of 13% per annum 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 6.5% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Bankwell Financial Group is expected to grow much faster than its industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analyst holding their earnings forecasts steady, in line with previous estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analyst clearly feeling that the intrinsic value of the business is improving.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have analyst estimates for Bankwell Financial Group going out as far as 2026, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 2 warning signs for Bankwell Financial Group 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.