Downgrade: Here's How Analysts See MVB Financial Corp. (NASDAQ:MVBF) Performing In The Near Term

Market forces rained on the parade of MVB Financial Corp. (NASDAQ:MVBF) shareholders today, when the analysts downgraded their forecasts for this year. Both revenue and earnings per share (EPS) estimates were cut sharply as analysts factored in the latest outlook for the business, concluding that they were too optimistic previously.

After this downgrade, MVB Financial's three analysts are now forecasting revenues of US$157m in 2023. This would be a meaningful 14% improvement in sales compared to the last 12 months. Per-share earnings are expected to leap 105% to US$2.51. Prior to this update, the analysts had been forecasting revenues of US$183m and earnings per share (EPS) of US$2.87 in 2023. Indeed, we can see that the analysts are a lot more bearish about MVB Financial's prospects, administering a substantial drop in revenue estimates and slashing their EPS estimates to boot.

Check out our latest analysis for MVB Financial

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that MVB Financial's rate of growth is expected to accelerate meaningfully, with the forecast 20% annualised revenue growth to the end of 2023 noticeably faster than its historical growth of 9.8% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 2.9% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect MVB Financial to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that analysts cut their earnings per share estimates, expecting a clear decline in business conditions. Unfortunately, analysts also downgraded their revenue estimates, although our data indicates revenues are expected to perform better than the wider market. Given the serious cut to this year's outlook, it's clear that analysts have turned more bearish on MVB Financial, and we wouldn't blame shareholders for feeling a little more cautious themselves.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. We have estimates - from multiple MVB Financial analysts - going out to 2024, and you can see them free on our platform here.

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies that insiders are buying.

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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.