Results: Northrim BanCorp, Inc. Beat Earnings Expectations And Analysts Now Have New Forecasts

As you might know, Northrim BanCorp, Inc. (NASDAQ:NRIM) just kicked off its latest first-quarter results with some very strong numbers. The company beat forecasts, with revenue of US$46m, some 4.0% above estimates, and statutory earnings per share (EPS) coming in at US$2.38, 42% ahead of expectations. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Northrim BanCorp after the latest results.

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Taking into account the latest results, the most recent consensus for Northrim BanCorp from two analysts is for revenues of US$194.3m in 2025. If met, it would imply a meaningful 18% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to grow 14% to US$8.66. Before this earnings report, the analysts had been forecasting revenues of US$184.8m and earnings per share (EPS) of US$8.04 in 2025. So there seems to have been a moderate uplift in sentiment following the latest results, given the upgrades to both revenue and earnings per share forecasts for next year.

See our latest analysis for Northrim BanCorp

Despite these upgrades,the analysts have not made any major changes to their price target of US$99.50, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Northrim BanCorp's growth to accelerate, with the forecast 25% annualised growth to the end of 2025 ranking favourably alongside historical growth of 3.6% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 7.1% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Northrim BanCorp is expected to grow much faster than its 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 Northrim BanCorp following these results. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. The consensus price target held steady at US$99.50, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.

We also provide an overview of the Northrim BanCorp Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

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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.