Stock Analysis

QCR Holdings, Inc. Just Recorded A 8.9% EPS Beat: Here's What Analysts Are Forecasting Next

NasdaqGM:QCRH
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QCR Holdings, Inc. (NASDAQ:QCRH) shareholders are probably feeling a little disappointed, since its shares fell 2.6% to US$78.66 in the week after its latest third-quarter results. Results look mixed - while revenue fell marginally short of analyst estimates at US$87m, statutory earnings beat expectations 8.9%, with QCR Holdings reporting profits of US$1.64 per share. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

See our latest analysis for QCR Holdings

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NasdaqGM:QCRH Earnings and Revenue Growth October 27th 2024

After the latest results, the five analysts covering QCR Holdings are now predicting revenues of US$391.6m in 2025. If met, this would reflect a solid 15% improvement in revenue compared to the last 12 months. Statutory earnings per share are forecast to decrease 2.1% to US$6.76 in the same period. Before this earnings report, the analysts had been forecasting revenues of US$387.6m and earnings per share (EPS) of US$6.63 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at US$88.80. 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. The most optimistic QCR Holdings analyst has a price target of US$92.00 per share, while the most pessimistic values it at US$85.00. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We can infer from the latest estimates that forecasts expect a continuation of QCR Holdings'historical trends, as the 12% annualised revenue growth to the end of 2025 is roughly in line with the 11% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 6.7% annually. So although QCR Holdings is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at US$88.80, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for QCR Holdings going out to 2026, and you can see them free on our platform here..

It might also be worth considering whether QCR Holdings' debt load is appropriate, using our debt analysis tools on the Simply Wall St platform, here.

Valuation is complex, but we're here to simplify it.

Discover if QCR Holdings might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.

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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.