Earnings Beat: West Bancorporation, Inc. Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models

It's been a good week for West Bancorporation, Inc. (NASDAQ:WTBA) shareholders, because the company has just released its latest third-quarter results, and the shares gained 3.2% to US$20.82. Revenues were US$20m, approximately in line with expectations, although statutory earnings per share (EPS) performed substantially better. EPS of US$0.35 were also better than expected, beating analyst predictions by 13%. Following the result, the analyst has 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. With this in mind, we've gathered the latest statutory forecasts to see what the analyst is expecting for next year.

See our latest analysis for West Bancorporation

Following the latest results, West Bancorporation's lone analyst are now forecasting revenues of US$91.6m in 2025. This would be a solid 18% improvement in revenue compared to the last 12 months. Per-share earnings are expected to leap 37% to US$1.75. In the lead-up to this report, the analyst had been modelling revenues of US$87.1m and earnings per share (EPS) of US$1.50 in 2025. So it seems there's been a definite increase in optimism about West Bancorporation's future following the latest results, with a substantial gain in the earnings per share forecasts in particular.

It will come as no surprise to learn that the analyst has increased their price target for West Bancorporation 9.5% to US$23.00on the back of these upgrades.

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. It's clear from the latest estimates that West Bancorporation's rate of growth is expected to accelerate meaningfully, with the forecast 14% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 1.5% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 6.7% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analyst also expect West Bancorporation 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 West Bancorporation's earnings potential next year. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analyst believes the intrinsic value of the business is likely to improve over time.

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 West Bancorporation going out as far as 2026, and you can see them free on our platform here.

You can also view our analysis of West Bancorporation's balance sheet, and whether we think West Bancorporation 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.