CF Bankshares Inc. (NASDAQ:CFBK) Just Released Its Annual Results And Analysts Are Updating Their Estimates

Last week saw the newest annual earnings release from CF Bankshares Inc. (NASDAQ:CFBK), an important milestone in the company's journey to build a stronger business. Results overall were respectable, with statutory earnings of US$2.77 per share roughly in line with what the analyst had forecast. Revenues of US$55m came in 4.9% ahead of analyst predictions. 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. We thought readers would find it interesting to see the analyst latest (statutory) post-earnings forecasts for next year.

Check out our latest analysis for CF Bankshares

Taking into account the latest results, CF Bankshares' single analyst currently expect revenues in 2022 to be US$56.2m, approximately in line with the last 12 months. Statutory earnings per share are predicted to swell 11% to US$3.16. Before this earnings report, the analyst had been forecasting revenues of US$58.6m and earnings per share (EPS) of US$2.65 in 2022. Although the analyst has lowered their sales forecasts, they've also made a nice gain to their earnings per share estimates, which implies there's been something of an uptick in sentiment following the latest results.

There's been no real change to the average price target of US$22.00, with the lower revenue and higher earnings forecasts not expected to meaningfully impact the company's valuation over a longer timeframe.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the CF Bankshares' past performance and to peers in the same industry. We would highlight that CF Bankshares' revenue growth is expected to slow, with the forecast 1.7% annualised growth rate until the end of 2022 being well below the historical 39% p.a. growth over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue shrink 1.9% per year. So it's clear that despite the slowdown in growth, CF Bankshares is still expected to grow meaningfully faster than the wider industry.

The Bottom Line

The most important thing here is that the analyst upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards CF Bankshares following these results. Sadly they also cut their revenue estimates, although at least the company is expected to perform a bit better than the wider industry. Even so, long term profitability is more important for the value creation process. The consensus price target held steady at US$22.00, with the latest estimates not enough to have an impact on their price target.

With that in mind, we wouldn't be too quick to come to a conclusion on CF Bankshares. Long-term earnings power is much more important than next year's profits. We have analyst estimates for CF Bankshares going out as far as 2023, and you can see them free on our platform here.

You can also see our analysis of CF Bankshares' Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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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.