One LCNB Corp. (NASDAQ:LCNB) Analyst Just Cut Their EPS Forecasts

One thing we could say about the covering analyst on LCNB Corp. (NASDAQ:LCNB) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. Both revenue and earnings per share (EPS) forecasts went under the knife, suggesting the analyst has soured majorly on the business.

Following the latest downgrade, the solitary analyst covering LCNB provided consensus estimates of US$58m revenue in 2024, which would reflect a definite 17% decline on its sales over the past 12 months. Statutory earnings per share are presumed to increase 5.3% to US$0.82. Before this latest update, the analyst had been forecasting revenues of US$70m and earnings per share (EPS) of US$1.44 in 2024. Indeed, we can see that the analyst is a lot more bearish about LCNB's prospects, administering a substantial drop in revenue estimates and slashing their EPS estimates to boot.

See our latest analysis for LCNB

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 22% annualised revenue decline to the end of 2024. That is a notable change from historical growth of 2.8% 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 6.1% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - LCNB is expected to lag the wider industry.

The Bottom Line

The most important thing to take away is that the analyst cut their earnings per share estimates, expecting a clear decline in business conditions. Unfortunately the analyst also downgraded their revenue estimates, and industry data suggests that LCNB's revenues are expected to grow slower than the wider market. Given the serious cut to this year's outlook, it's clear that the analyst has turned more bearish on LCNB, and we wouldn't blame shareholders for feeling a little more cautious themselves.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for LCNB going out as far as 2025, and you can see them 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.