It's been a good week for Camden National Corporation (NASDAQ:CAC) shareholders, because the company has just released its latest quarterly results, and the shares gained 4.7% to US$32.13. It looks like a credible result overall - although revenues of US$42m were what the analysts expected, Camden National surprised by delivering a (statutory) profit of US$0.91 per share, an impressive 29% above what was forecast. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
After the latest results, the four analysts covering Camden National are now predicting revenues of US$169.8m in 2024. If met, this would reflect a satisfactory 4.4% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to increase 3.4% to US$3.10. Before this earnings report, the analysts had been forecasting revenues of US$171.9m and earnings per share (EPS) of US$3.03 in 2024. So the consensus seems to have become somewhat more optimistic on Camden National's earnings potential following these results.
There's been no major changes to the consensus price target of US$35.33, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Camden National, with the most bullish analyst valuing it at US$37.00 and the most bearish at US$34.00 per share. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.
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 Camden National's growth to accelerate, with the forecast 5.9% annualised growth to the end of 2024 ranking favourably alongside historical growth of 1.2% per annum over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 6.0% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Camden National is expected to grow at about the same rate as the wider industry.
The Bottom Line
The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Camden National following these results. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target held steady at US$35.33, with the latest estimates not enough to have an impact on their price targets.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Camden National going out to 2025, and you can see them free on our platform here..
You can also see whether Camden National is carrying too much debt, and whether its balance sheet is healthy, for free on our platform here.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.