Need To Know: Analysts Are Much More Bullish On First Internet Bancorp (NASDAQ:INBK) Revenues

By
Simply Wall St
Published
July 24, 2021
NasdaqGS:INBK
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First Internet Bancorp (NASDAQ:INBK) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's statutory forecasts. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects.

After the upgrade, the consensus from First Internet Bancorp's five analysts is for revenues of US$108m in 2021, which would reflect a small 4.7% decline in sales compared to the last year of performance. Statutory earnings per share are presumed to accumulate 7.3% to US$4.67. Before this latest update, the analysts had been forecasting revenues of US$93m and earnings per share (EPS) of US$4.57 in 2021. The forecasts seem more optimistic now, with a solid increase in revenue and a small increase to earnings per share estimates.

View our latest analysis for First Internet Bancorp

earnings-and-revenue-growth
NasdaqGS:INBK Earnings and Revenue Growth July 24th 2021

Despite these upgrades, the analysts have not made any major changes to their price target of US$45.40, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth. 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. The most optimistic First Internet Bancorp analyst has a price target of US$54.00 per share, while the most pessimistic values it at US$39.00. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

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 sales are expected to reverse, with a forecast 9.1% annualised revenue decline to the end of 2021. That is a notable change from historical growth of 16% 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 3.8% annually for the foreseeable future. It's pretty clear that First Internet Bancorp's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most important thing to take away from this upgrade is that analysts upgraded their earnings per share estimates for this year, expecting improving business conditions. Fortunately, they also upgraded their revenue estimates, and are forecasting revenues to grow slower than the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at First Internet Bancorp.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. At Simply Wall St, we have a full range of analyst estimates for First Internet Bancorp going out to 2023, 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. 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.
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