Industry Analysts Just Upgraded Their Republic Bancorp, Inc. (NASDAQ:RBCA.A) Revenue Forecasts By 10%

Celebrations may be in order for Republic Bancorp, Inc. (NASDAQ:RBCA.A) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The analysts have sharply increased their revenue numbers, with a view that Republic Bancorp will make substantially more sales than they'd previously expected. The market seems to be pricing in some improvement in the business too, with the stock up 4.8% over the past week, closing at US$44.85. Whether the upgrade is enough to drive the stock price higher is yet to be seen, however.

After the upgrade, the twin analysts covering Republic Bancorp are now predicting revenues of US$297m in 2023. If met, this would reflect a credible 3.9% improvement in sales compared to the last 12 months. Statutory earnings per share are expected to be US$4.64, roughly flat on the last 12 months. Previously, the analysts had been modelling revenues of US$269m and earnings per share (EPS) of US$4.47 in 2023. Sentiment certainly seems to have improved in recent times, with a decent improvement in revenue and a small increase to earnings per share estimates.

Check out our latest analysis for Republic Bancorp

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The period to the end of 2023 brings more of the same, according to the analysts, with revenue forecast to display 3.9% growth on an annualised basis. That is in line with its 4.4% annual growth over the past five years. Compare this with the broader industry (in aggregate), which analyst estimates suggest will see revenues grow 6.5% annually. So it's pretty clear that Republic Bancorp is expected to grow slower than similar companies in the same industry.

The Bottom Line

The biggest takeaway for us from these new estimates is that analysts upgraded their earnings per share estimates, with improved earnings power expected for this year. Pleasantly, analysts also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow slower than the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Republic Bancorp.

Still, the long-term prospects of the business are much more relevant than next year's earnings. We have analyst estimates for Republic Bancorp going out as far as 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.