MainStreet Bancshares, Inc. (NASDAQ:MNSB) Just Released Its Third-Quarter Earnings: Here's What Analysts Think

Last week saw the newest quarterly earnings release from MainStreet Bancshares, Inc. (NASDAQ:MNSB), an important milestone in the company's journey to build a stronger business. It was a credible result overall, with revenues of US$20m and statutory earnings per share of US$0.77 both in line with analyst estimates, showing that MainStreet Bancshares is executing in line with expectations. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

View our latest analysis for MainStreet Bancshares

Following last week's earnings report, MainStreet Bancshares' twin analysts are forecasting 2024 revenues to be US$82.7m, approximately in line with the last 12 months. Statutory earnings per share are forecast to dive 38% to US$2.27 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$79.9m and earnings per share (EPS) of US$2.32 in 2024. So it's pretty clear consensus is mixed on MainStreet Bancshares after the latest results; whilethe analysts lifted revenue numbers, they also administered a small dip in per-share earnings expectations.

The consensus price target was unchanged at US$25.75, suggesting the business is performing roughly in line with expectations, despite some adjustments to profit and revenue forecasts.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that MainStreet Bancshares' revenue growth is expected to slow, with the forecast 1.6% annualised growth rate until the end of 2024 being well below the historical 19% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 4.3% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than MainStreet Bancshares.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for MainStreet Bancshares. Fortunately, they also upgraded their revenue estimates, although our data indicates it 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At least one analyst has provided forecasts out to 2025, which can be seen for free on our platform here.

Plus, you should also learn about the 2 warning signs we've spotted with MainStreet Bancshares (including 1 which is a bit unpleasant) .

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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.