MidWestOne Financial Group, Inc. Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year

Shareholders might have noticed that MidWestOne Financial Group, Inc. (NASDAQ:MOFG) filed its annual result this time last week. The early response was not positive, with shares down 8.6% to US$24.59 in the past week. Revenues were US$163m, approximately in line with whatthe analysts expected, although statutory earnings per share (EPS) crushed expectations, coming in at US$0.41, an impressive 720% ahead of estimates. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for MidWestOne Financial Group

Taking into account the latest results, the current consensus, from the four analysts covering MidWestOne Financial Group, is for revenues of US$149.4m in 2021, which would reflect a not inconsiderable 8.5% reduction in MidWestOne Financial Group's sales over the past 12 months. Per-share earnings are expected to shoot up 521% to US$2.56. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$158.3m and earnings per share (EPS) of US$2.47 in 2021. If anything, the analysts look to have become slightly more optimistic overall; while they decreased their revenue forecasts, EPS predictions increased and ultimately earnings are more important.

There's been no real change to the average price target of US$27.80, with the lower revenue and higher earnings forecasts not expected to meaningfully impact the company's valuation over a longer timeframe. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on MidWestOne Financial Group, with the most bullish analyst valuing it at US$29.00 and the most bearish at US$26.00 per share. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

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. These estimates imply that sales are expected to slow, with a forecast revenue decline of 8.5%, a significant reduction from annual growth of 8.7% 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 6.1% next year. It's pretty clear that MidWestOne Financial Group'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 MidWestOne Financial Group following these results. Unfortunately, they also downgraded their revenue estimates, and our data indicates revenues are expected to perform worse than the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. Even so, long term profitability is more important for the value creation process. 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.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for MidWestOne Financial Group going out to 2022, and you can see them free on our platform here..

It is also worth noting that we have found 3 warning signs for MidWestOne Financial Group that you need to take into consideration.

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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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