Citizens Community Bancorp, Inc. Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions

Citizens Community Bancorp, Inc. (NASDAQ:CZWI) defied analyst predictions to release its first-quarter results, which were ahead of market expectations. It was overall a positive result, with revenues beating expectations by 9.1% to hit US$15m. Citizens Community Bancorp also reported a statutory profit of US$0.39, which was an impressive 50% above what the analysts had forecast. 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.

Check out our latest analysis for Citizens Community Bancorp

Taking into account the latest results, the dual analysts covering Citizens Community Bancorp provided consensus estimates of US$56.5m revenue in 2024, which would reflect a noticeable 5.8% decline over the past 12 months. Statutory earnings per share are expected to dip 3.8% to US$1.24 in the same period. Before this earnings report, the analysts had been forecasting revenues of US$57.2m and earnings per share (EPS) of US$1.20 in 2024. So the consensus seems to have become somewhat more optimistic on Citizens Community Bancorp's earnings potential following these results.

The consensus price target was unchanged at US$13.25, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that revenue is expected to reverse, with a forecast 7.7% annualised decline to the end of 2024. That is a notable change from historical growth of 4.8% 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 6.0% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Citizens Community Bancorp is expected to lag the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Citizens Community Bancorp's earnings potential next year. 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$13.25, 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 Citizens Community Bancorp. Long-term earnings power is much more important than next year's profits. At least one analyst has provided forecasts out to 2025, which can be seen for free on our platform here.

You can also see whether Citizens Community Bancorp is carrying too much debt, and whether its balance sheet is healthy, 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.