Chemung Financial Corporation Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next

It's been a good week for Chemung Financial Corporation (NASDAQ:CHMG) shareholders, because the company has just released its latest second-quarter results, and the shares gained 5.0% to US$40.24. Chemung Financial reported US$24m in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of US$1.33 beat expectations, being 9.9% higher than what the analysts expected. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

See our latest analysis for Chemung Financial

Following last week's earnings report, Chemung Financial's dual analysts are forecasting 2023 revenues to be US$96.6m, approximately in line with the last 12 months. Statutory earnings per share are expected to fall 13% to US$5.08 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$97.8m and earnings per share (EPS) of US$5.03 in 2023. 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.

The analysts reconfirmed their price target of US$43.67, showing that the business is executing well and in line with expectations.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 0.6% by the end of 2023. This indicates a significant reduction from annual growth of 6.2% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 4.4% per year. It's pretty clear that Chemung Financial's revenues are expected to perform substantially worse than the wider 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. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Chemung Financial's revenue is expected to perform worse than the wider industry. The consensus price target held steady at US$43.67, with the latest estimates not enough to have an impact on their price targets.

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 Chemung Financial going out as far as 2024, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 1 warning sign for Chemung Financial 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.