Analysts Just Slashed Their HarborOne Bancorp, Inc. (NASDAQ:HONE) EPS Numbers

The analysts covering HarborOne Bancorp, Inc. (NASDAQ:HONE) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for this year. Both revenue and earnings per share (EPS) forecasts went under the knife, suggesting the analysts have soured majorly on the business.

Following the latest downgrade, the current consensus, from the four analysts covering HarborOne Bancorp, is for revenues of US$131m in 2023, which would reflect a concerning 31% reduction in HarborOne Bancorp's sales over the past 12 months. Statutory earnings per share are anticipated to nosedive 28% to US$0.65 in the same period. Prior to this update, the analysts had been forecasting revenues of US$153m and earnings per share (EPS) of US$0.83 in 2023. Indeed, we can see that the analysts are a lot more bearish about HarborOne Bancorp's prospects, administering a substantial drop in revenue estimates and slashing their EPS estimates to boot.

See our latest analysis for HarborOne Bancorp

It'll come as no surprise then, to learn that the analysts have cut their price target 9.4% to US$12.83. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on HarborOne Bancorp, with the most bullish analyst valuing it at US$13.00 and the most bearish at US$12.50 per share. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or that the analysts have a clear view on its prospects.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 39% by the end of 2023. This indicates a significant reduction from annual growth of 12% 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 2.9% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - HarborOne Bancorp is expected to lag the wider industry.

The Bottom Line

The biggest issue in the new estimates is that analysts have reduced their earnings per share estimates, suggesting business headwinds lay ahead for HarborOne Bancorp. Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales slower than the wider market. After such a stark change in sentiment from analysts, we'd understand if readers now felt a bit wary of HarborOne Bancorp.

Still, the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for HarborOne Bancorp going out to 2024, and you can see them free on our platform here.

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies that insiders are buying.

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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.