Analysts Have Made A Financial Statement On Capital City Bank Group, Inc.'s (NASDAQ:CCBG) Yearly Report

Capital City Bank Group, Inc. (NASDAQ:CCBG) just released its latest full-year report and things are not looking great. Capital City Bank Group missed analyst forecasts, with revenues of US$203m and statutory earnings per share (EPS) of US$1.88, falling short by 4.8% and 2.1% respectively. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. 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 Capital City Bank Group

Following the latest results, Capital City Bank Group's four analysts are now forecasting revenues of US$214.8m in 2021. This would be a credible 5.9% improvement in sales compared to the last 12 months. Statutory earnings per share are expected to decrease 9.6% to US$1.70 in the same period. In the lead-up to this report, the analysts had been modelling revenues of US$208.5m and earnings per share (EPS) of US$1.71 in 2021. So it looks like there's been no major change in sentiment following the latest results, although the analysts have made a small lift in to revenue forecasts.

It may not be a surprise to see thatthe analysts have reconfirmed their price target of US$25.90, implying that the uplift in sales is not expected to greatly contribute to Capital City Bank Group's valuation in the near term. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Capital City Bank Group at US$28.50 per share, while the most bearish prices it at US$24.00. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Capital City Bank Group's past performance and to peers in the same industry. It's pretty clear that there is an expectation that Capital City Bank Group's revenue growth will slow down substantially, with revenues next year expected to grow 5.9%, compared to a historical growth rate of 8.0% over the past five years. Compare this to the 693 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 6.3% per year. So it's pretty clear that, while Capital City Bank Group's revenue growth is expected to slow, it's expected to grow roughly in line with the 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 analysts holding their earnings forecasts steady, in line with previous estimates. They also upgraded their revenue forecasts, although the latest estimates suggest that Capital City Bank Group will grow in line with the overall industry. The consensus price target held steady at US$25.90, with the latest estimates not enough to have an impact on their price targets.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for Capital City Bank Group going out to 2022, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 2 warning signs for Capital City Bank Group you should be aware of, and 1 of them makes us a bit uncomfortable.

If you decide to trade Capital City Bank Group, use the lowest-cost* platform that is rated #1 Overall by Barron’s, Interactive Brokers. Trade stocks, options, futures, forex, bonds and funds on 135 markets, all from a single integrated account. Promoted

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. 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.
^*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.