Analysts Just Made A Major Revision To Their Nicolet Bankshares, Inc. (NASDAQ:NCBS) Revenue Forecasts

One thing we could say about the analysts on Nicolet Bankshares, Inc. (NASDAQ:NCBS) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. This report focused on revenue estimates, and it looks as though the consensus view of the business has become substantially more conservative. Recent action in the market also suggests Nicolet Bankshares has lost favour recently, which could make today's downgrade an even greater concern in the near term. The stock price has dropped 4.2% to US$77.72 in the past week.

Following the latest downgrade, Nicolet Bankshares' five analysts currently expect revenues in 2022 to be US$233m, approximately in line with the last 12 months. Statutory earnings per share are presumed to leap 41% to US$7.01. Before this latest update, the analysts had been forecasting revenues of US$260m and earnings per share (EPS) of US$7.02 in 2022. So there's been a clear change in analyst sentiment in the recent update, with the analysts making a substantial drop in revenues and reconfirming their earnings per share estimates.

See our latest analysis for Nicolet Bankshares

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Nicolet Bankshares' revenue growth is expected to slow, with the forecast 2.3% annualised growth rate until the end of 2022 being well below the historical 13% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 7.4% per year. Factoring in the forecast slowdown in growth, it seems obvious that Nicolet Bankshares is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with analysts reconfirming that earnings per share are expected to continue performing in line with their prior expectations. Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales slower than the wider market. Given the stark change in sentiment, we'd understand if investors became more cautious on Nicolet Bankshares after today.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. At Simply Wall St, we have a full range of analyst estimates for Nicolet Bankshares going out to 2023, 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.