Results: Unity Bancorp, Inc. Exceeded Expectations And The Consensus Has Updated Its Estimates

Unity Bancorp, Inc. (NASDAQ:UNTY) investors will be delighted, with the company turning in some strong numbers with its latest results. The company beat expectations with revenues of US$33m arriving 4.6% ahead of forecasts. Statutory earnings per share (EPS) were US$1.41, 9.3% ahead of estimates. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

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After the latest results, the three analysts covering Unity Bancorp are now predicting revenues of US$139.8m in 2026. If met, this would reflect a meaningful 15% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to increase 5.3% to US$5.66. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$136.7m and earnings per share (EPS) of US$5.58 in 2026. There doesn't appear to have been a major change in sentiment following the results, other than the modest lift to revenue estimates.

See our latest analysis for Unity Bancorp

Even though revenue forecasts increased, there was no change to the consensus price target of US$59.67, suggesting the analysts are focused on earnings as the driver of value creation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Unity Bancorp analyst has a price target of US$61.00 per share, while the most pessimistic values it at US$58.00. This is a very narrow spread of estimates, implying either that Unity Bancorp is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

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. It's clear from the latest estimates that Unity Bancorp's rate of growth is expected to accelerate meaningfully, with the forecast 12% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 8.8% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 7.7% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Unity Bancorp is expected to grow much faster than its 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. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. The consensus price target held steady at US$59.67, 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 Unity Bancorp going out to 2027, and you can see them free on our platform here..

You can also view our analysis of Unity Bancorp's balance sheet, and whether we think Unity Bancorp is carrying too much debt, for free on our platform 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.