LINKBANCORP, Inc. Just Recorded A 28% Revenue Beat: Here's What Analysts Think

LINKBANCORP, Inc. (NASDAQ:LNKB) defied analyst predictions to release its quarterly results, which were ahead of market expectations. Performance was better than the analysts expected, with revenues of US$39m coming in28% ahead of expectations, and statutory earnings per share (EPS) of US$0.41 exceeding forecasts by 18%. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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Taking into account the latest results, LINKBANCORP's four analysts currently expect revenues in 2025 to be US$119.2m, approximately in line with the last 12 months. Statutory earnings per share are predicted to increase 7.7% to US$1.03. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$119.7m and earnings per share (EPS) of US$0.99 in 2025. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

See our latest analysis for LINKBANCORP

There's been no major changes to the consensus price target of US$8.25, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. 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. Currently, the most bullish analyst values LINKBANCORP at US$9.00 per share, while the most bearish prices it at US$7.50. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting LINKBANCORP is an easy business to forecast or the the analysts are all using similar assumptions.

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. We would highlight that revenue is expected to reverse, with a forecast 1.8% annualised decline to the end of 2025. That is a notable change from historical growth of 56% over the last three years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 7.1% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - LINKBANCORP is expected to lag the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around LINKBANCORP's earnings potential next year. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that LINKBANCORP's revenue is expected to perform worse 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.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple LINKBANCORP analysts - going out to 2026, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 1 warning sign for LINKBANCORP you should be aware of.

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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.