Analysts Just Shaved Their Coastal Financial Corporation (NASDAQ:CCB) Forecasts Dramatically

Market forces rained on the parade of Coastal Financial Corporation (NASDAQ:CCB) shareholders today, when the analysts downgraded their forecasts for next year. Both revenue and earnings per share (EPS) forecasts went under the knife, suggesting analysts have soured majorly on the business.

After this downgrade, Coastal Financial's three analysts are now forecasting revenues of US$563m in 2024. This would be a sizeable 116% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to surge 25% to US$4.57. Before this latest update, the analysts had been forecasting revenues of US$628m and earnings per share (EPS) of US$5.53 in 2024. It looks like analyst sentiment has declined substantially, with a measurable cut to revenue estimates and a considerable drop in earnings per share numbers as well.

See our latest analysis for Coastal Financial

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that Coastal Financial's rate of growth is expected to accelerate meaningfully, with the forecast 85% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 44% 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 4.4% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Coastal Financial to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that analysts cut their earnings per share estimates, expecting a clear decline in business conditions. While analysts did downgrade their revenue estimates, these forecasts still imply revenues will perform better than the wider market. We wouldn't be surprised to find shareholders feeling a bit shell-shocked, after these downgrades. It looks like analysts have become a lot more bearish on Coastal Financial, and their negativity could be grounds for caution.

Still, the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Coastal Financial going out to 2025, and you can see them free on our platform here.

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies that insiders are buying.

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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.