Investar Holding Corporation Just Recorded A 104% EPS Beat: Here's What Analysts Are Forecasting Next

Investors in Investar Holding Corporation (NASDAQ:ISTR) had a good week, as its shares rose 3.9% to close at US$16.27 following the release of its quarterly results. It looks like a credible result overall - although revenues of US$19m were what the analysts expected, Investar Holding surprised by delivering a (statutory) profit of US$0.48 per share, an impressive 104% above what was 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Check out our latest analysis for Investar Holding

Taking into account the latest results, the current consensus, from the two analysts covering Investar Holding, is for revenues of US$78.7m in 2024. This implies a perceptible 5.8% reduction in Investar Holding's revenue over the past 12 months. Statutory earnings per share are forecast to nosedive 22% to US$1.41 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$78.6m and earnings per share (EPS) of US$1.24 in 2024. Although the revenue estimates have not really changed, we can see there's been a decent improvement in earnings per share expectations, suggesting that the analysts have become more bullish after the latest result.

There's been no major changes to the consensus price target of US$20.00, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation.

Of course, another way to look at these forecasts is to place them into context against the industry itself. 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 7.8% 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 5.9% per year. It's pretty clear that Investar Holding's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Investar Holding following these results. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Investar Holding's revenue is expected to perform worse than the wider industry. The consensus price target held steady at US$20.00, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have analyst estimates for Investar Holding going out as far as 2025, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 1 warning sign for Investar Holding you should know about.

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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.