Finward Bancorp Just Missed Revenue By 7.6%: Here's What Analysts Think Will Happen Next

It's shaping up to be a tough period for Finward Bancorp (NASDAQ:FNWD), which a week ago released some disappointing full-year results that could have a notable impact on how the market views the stock. Finward Bancorp missed analyst forecasts, with revenues of US$63m and statutory earnings per share (EPS) of US$1.96, falling short by 7.6% and 4.9% respectively. 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. So we gathered the latest post-earnings forecasts to see what estimate suggests is in store for next year.

Check out our latest analysis for Finward Bancorp

After the latest results, the sole analyst covering Finward Bancorp are now predicting revenues of US$77.8m in 2024. If met, this would reflect a major 23% improvement in revenue compared to the last 12 months. Per-share earnings are expected to leap 72% to US$3.35. In the lead-up to this report, the analyst had been modelling revenues of US$66.9m and earnings per share (EPS) of US$1.50 in 2024. There has definitely been an improvement in perception after these results, with the analyst noticeably increasing both their earnings and revenue estimates.

It will come as no surprise to learn that the analyst has increased their price target for Finward Bancorp 10% to US$29.00on the back of these upgrades.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's clear from the latest estimates that Finward Bancorp's rate of growth is expected to accelerate meaningfully, with the forecast 23% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 10.0% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 5.6% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Finward Bancorp is expected to grow much faster than its industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Finward Bancorp'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. There was also a nice increase in the price target, with the analyst clearly feeling that the intrinsic value of the business is improving.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have analyst estimates for Finward Bancorp going out as far as 2025, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 3 warning signs for Finward Bancorp (1 is concerning) you should be aware of.

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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.