Earnings Beat: Southern States Bancshares, Inc. Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models

Southern States Bancshares, Inc. (NASDAQ:SSBK) defied analyst predictions to release its second-quarter results, which were ahead of market expectations. It was overall a positive result, with revenues beating expectations by 5.8% to hit US$18m. Southern States Bancshares reported statutory earnings per share (EPS) US$0.59, which was a notable 16% above what the analysts had forecast. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

See our latest analysis for Southern States Bancshares

Taking into account the latest results, the consensus forecast from Southern States Bancshares' two analysts is for revenues of US$71.0m in 2022, which would reflect a solid 14% improvement in sales compared to the last 12 months. Per-share earnings are expected to expand 10% to US$2.38. In the lead-up to this report, the analysts had been modelling revenues of US$69.0m and earnings per share (EPS) of US$2.20 in 2022. It looks like there's been a modest increase in sentiment following the latest results, withthe analysts becoming a bit more optimistic in their predictions for both revenues and earnings.

Despite these upgrades,the analysts have not made any major changes to their price target of US$26.50, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Southern States Bancshares' past performance and to peers in the same industry. The analysts are definitely expecting Southern States Bancshares' growth to accelerate, with the forecast 30% annualised growth to the end of 2022 ranking favourably alongside historical growth of 15% per annum over the past year. Compare this with other companies in the same industry, which are forecast to grow their revenue 7.6% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Southern States Bancshares to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Southern States Bancshares' earnings potential next year. Happily, they also upgraded their revenue estimates, and are forecasting revenues to grow faster than the wider industry. The consensus price target held steady at US$26.50, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Southern States Bancshares. Long-term earnings power is much more important than next year's profits. We have analyst estimates for Southern States Bancshares going out as far as 2023, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 1 warning sign for Southern States Bancshares that you should be aware of.

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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.