Investors in West Bancorporation, Inc. (NASDAQ:WTBA) had a good week, as its shares rose 3.2% to close at US$20.82 following the release of its quarterly results. 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%. Earnings are an important time for investors, as they can track a company's performance, look at what the analyst is 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 analyst is expecting for next year.
Following the latest results, West Bancorporation's one analyst are now forecasting revenues of US$91.6m in 2025. This would be a meaningful 18% improvement in revenue compared to the last 12 months. Per-share earnings are expected to leap 37% to US$1.75. Yet prior to the latest earnings, the analyst had been anticipated revenues of US$87.1m and earnings per share (EPS) of US$1.50 in 2025. There's been a pretty noticeable increase in sentiment, with the analyst upgrading revenues and making a nice increase in earnings per share 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. The analyst is definitely expecting West Bancorporation's growth to accelerate, with the forecast 14% annualised growth to the end of 2025 ranking favourably alongside historical growth of 1.5% per annum 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 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. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. There was also a nice increase in the price target, with the analyst clearly feeling that the intrinsic value of the business is improving.
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 2026, and you can see them free on our platform here.
You can also see whether West Bancorporation is carrying too much debt, and whether its balance sheet is healthy, 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.
