Stock Analysis

Results: Citizens Community Bancorp, Inc. Exceeded Expectations And The Consensus Has Updated Its Estimates

  •  Updated
NasdaqGM:CZWI
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Citizens Community Bancorp, Inc. (NASDAQ:CZWI) just released its quarterly report and things are looking bullish. The company beat both earnings and revenue forecasts, with revenue of US$17m, some 6.1% above estimates, and statutory earnings per share (EPS) coming in at US$0.31, 48% ahead of expectations. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

View our latest analysis for Citizens Community Bancorp

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NasdaqGM:CZWI Earnings and Revenue Growth January 30th 2021

Taking into account the latest results, the most recent consensus for Citizens Community Bancorp from three analysts is for revenues of US$61.7m in 2021 which, if met, would be a solid 8.2% increase on its sales over the past 12 months. Statutory earnings per share are forecast to sink 11% to US$0.98 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$62.6m and earnings per share (EPS) of US$1.06 in 2021. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.

The consensus price target held steady at US$11.17, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Citizens Community Bancorp, with the most bullish analyst valuing it at US$11.50 and the most bearish at US$10.00 per share. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Citizens Community Bancorp's revenue growth is expected to slow, with forecast 8.2% increase next year well below the historical 23%p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 6.5% next year. Even after the forecast slowdown in growth, it seems obvious that Citizens Community Bancorp is also expected to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

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 Simply Wall St, we have a full range of analyst estimates for Citizens Community Bancorp going out to 2022, and you can see them free on our platform here..

Plus, you should also learn about the 3 warning signs we've spotted with Citizens Community Bancorp (including 1 which is concerning) .

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What are the risks and opportunities for Citizens Community Bancorp?

Citizens Community Bancorp, Inc. operates as a bank holding company for Citizens Community Federal N.A.

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Rewards

  • Trading at 41.6% below our estimate of its fair value

Risks

  • Earnings are forecast to decline by an average of 8% per year for the next 3 years

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