Capital City Bank Group, Inc. Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next

It's been a good week for Capital City Bank Group, Inc. (NASDAQ:CCBG) shareholders, because the company has just released its latest quarterly results, and the shares gained 5.5% to US$27.26. The result was positive overall - although revenues of US$56m were in line with what the analysts predicted, Capital City Bank Group surprised by delivering a statutory profit of US$0.74 per share, modestly greater than expected. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

See our latest analysis for Capital City Bank Group

Taking into account the latest results, the consensus forecast from Capital City Bank Group's four analysts is for revenues of US$228.1m in 2024. This reflects a credible 3.0% improvement in revenue compared to the last 12 months. Statutory earnings per share are expected to dip 4.7% to US$2.88 in the same period. Before this earnings report, the analysts had been forecasting revenues of US$232.4m and earnings per share (EPS) of US$2.90 in 2024. 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.

There were no changes to revenue or earnings estimates or the price target of US$34.75, suggesting that the company has met expectations in its recent result. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Capital City Bank Group analyst has a price target of US$37.00 per share, while the most pessimistic values it at US$31.00. This is a very narrow spread of estimates, implying either that Capital City Bank Group is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

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 to the end of 2024 expected to display 4.1% growth on an annualised basis. This is compared to a historical growth rate of 7.4% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 5.9% per year. Factoring in the forecast slowdown in growth, it seems obvious that Capital City Bank Group is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at US$34.75, 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. At Simply Wall St, we have a full range of analyst estimates for Capital City Bank Group going out to 2025, and you can see them free on our platform here..

You should always think about risks though. Case in point, we've spotted 1 warning sign for Capital City Bank Group you should be aware of.

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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.