CVB Financial Corp. (NASDAQ:CVBF) Yearly Results: Here's What Analysts Are Forecasting For This Year

Last week, you might have seen that CVB Financial Corp. (NASDAQ:CVBF) released its full-year result to the market. The early response was not positive, with shares down 5.7% to US$17.92 in the past week. Results were roughly in line with estimates, with revenues of US$545m and statutory earnings per share of US$1.59. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

See our latest analysis for CVB Financial

Following the recent earnings report, the consensus from seven analysts covering CVB Financial is for revenues of US$534.3m in 2024. This implies a perceptible 2.0% decline in revenue compared to the last 12 months. Statutory earnings per share are expected to dip 5.3% to US$1.51 in the same period. Before this earnings report, the analysts had been forecasting revenues of US$541.9m and earnings per share (EPS) of US$1.58 in 2024. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a minor downgrade to their earnings per share forecasts.

The consensus price target held steady at US$21.75, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on CVB Financial, with the most bullish analyst valuing it at US$25.50 and the most bearish at US$20.00 per share. This is a very narrow spread of estimates, implying either that CVB Financial is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

Of course, another way to look at these forecasts is to place them into context against the industry itself. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 2.0% by the end of 2024. This indicates a significant reduction from annual growth of 5.1% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 5.6% annually for the foreseeable future. It's pretty clear that CVB Financial's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for CVB Financial. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that CVB Financial's revenue is expected to perform worse than the wider industry. The consensus price target held steady at US$21.75, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on CVB Financial. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for CVB Financial going out to 2025, and you can see them free on our platform here..

You can also view our analysis of CVB Financial's balance sheet, and whether we think CVB Financial is carrying too much debt, for free on our platform here.

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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.