Capital City Bank Group, Inc. Just Missed Earnings And Its EPS Looked Sad - But Analysts Have Updated Their Models
It's been a good week for Capital City Bank Group, Inc. (NASDAQ:CCBG) shareholders, because the company has just released its latest quarterly results, and the shares gained 2.9% to US$18.70. Results overall were not great, with earnings of US$0.25 per share falling drastically short of analyst expectations. Meanwhile revenues hit US$41m and were slightly better than forecasts. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Capital City Bank Group after the latest results.
View our latest analysis for Capital City Bank Group
Following the latest results, Capital City Bank Group's four analysts are now forecasting revenues of US$164.2m in 2020. This would be a credible 6.7% improvement in sales compared to the last 12 months. Statutory earnings per share are forecast to tumble 29% to US$1.22 in the same period. In the lead-up to this report, the analysts had been modelling revenues of US$159.0m and earnings per share (EPS) of US$1.37 in 2020. While next year's revenue estimates increased, there was also a substantial drop in EPS expectations, suggesting the consensus has a bit of a mixed view of these results.
The consensus price target was unchanged at US$24.25, suggesting the business is performing roughly in line with expectations, despite some adjustments to profit and revenue forecasts. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Capital City Bank Group at US$31.00 per share, while the most bearish prices it at US$19.00. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The analysts are definitely expecting Capital City Bank Group'sgrowth to accelerate, with the forecast 6.7% growth ranking favourably alongside historical growth of 4.3% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 2.9% next year. Factoring in the forecast acceleration in revenue, it's pretty clear that Capital City Bank Group is expected to grow much faster than its industry.
The Bottom Line
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Capital City Bank Group. 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$24.25, 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 Capital City Bank Group going out to 2021, and you can see them free on our platform here..
That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 2 warning signs with Capital City Bank Group , and understanding these should be part of your investment process.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
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