Last week saw the newest first-quarter earnings release from West Bancorporation, Inc. (NASDAQ:WTBA), an important milestone in the company's journey to build a stronger business. Revenues were US$19m, approximately in line with whatthe analyst expected, although statutory earnings per share (EPS) crushed expectations, coming in at US$0.35, an impressive 30% ahead of estimates. This is an important time for investors, as they can track a company's performance in its report, look at what expert is forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we've gathered the latest statutory forecasts to see what the analyst is expecting for next year.
Taking into account the latest results, West Bancorporation's lone analyst currently expect revenues in 2024 to be US$76.8m, approximately in line with the last 12 months. Statutory per share are forecast to be US$1.30, approximately in line with the last 12 months. In the lead-up to this report, the analyst had been modelling revenues of US$77.2m and earnings per share (EPS) of US$1.15 in 2024. There was no real change to the revenue estimates, but the analyst does seem more bullish on earnings, given the nice gain to earnings per share expectations following these results.
The average the analyst price target fell 14% to US$18.00, suggesting thatthe analyst has other concerns, and the improved earnings per share outlook was not enough to allay them.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the West Bancorporation's past performance and to peers in the same industry. We would highlight that West Bancorporation's revenue growth is expected to slow, with the forecast 0.5% annualised growth rate until the end of 2024 being well below the historical 5.0% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 5.7% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than West Bancorporation.
The Bottom Line
The most important thing here is that the analyst upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards West Bancorporation following these results. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target fell measurably, with the analyst seemingly not reassured by the latest results, leading to a lower estimate of West Bancorporation's future valuation.
With that in mind, we wouldn't be too quick to come to a conclusion on West Bancorporation. Long-term earnings power is much more important than next year's profits. We have analyst estimates for West Bancorporation going out as far as 2025, and you can see them free on our platform here.
And what about risks? Every company has them, and we've spotted 1 warning sign for West Bancorporation you should know about.
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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.