One Plumas Bancorp (NASDAQ:PLBC) Analyst Just Slashed Their 2024 Revenue Estimates

The analyst covering Plumas Bancorp (NASDAQ:PLBC) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for this year. There was a fairly draconian cut to their revenue estimates, perhaps an implicit admission that previous forecasts were much too optimistic.

Following the downgrade, the consensus from solitary analyst covering Plumas Bancorp is for revenues of US$60m in 2024, implying a stressful 22% decline in sales compared to the last 12 months. Statutory earnings per share are anticipated to reduce 9.7% to US$4.35 in the same period. Previously, the analyst had been modelling revenues of US$81m and earnings per share (EPS) of US$4.80 in 2024. It looks like analyst sentiment has fallen somewhat in this update, with a pretty serious reduction to revenue estimates and a small dip in earnings per share numbers as well.

Check out our latest analysis for Plumas Bancorp

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that sales are expected to reverse, with a forecast 28% annualised revenue decline to the end of 2024. That is a notable change from historical growth of 15% 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 5.8% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Plumas Bancorp is expected to lag the wider industry.

The Bottom Line

The biggest issue in the new estimates is that the analyst has reduced their earnings per share estimates, suggesting business headwinds lay ahead for Plumas Bancorp. 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 Plumas Bancorp after today.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for Plumas Bancorp going out as far as 2025, and you can see them free on our platform here.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are downgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.

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