Yahoo Finance Results: Middlefield Banc Corp. Beat Earnings Expectations And Analysts Now Have New Forecasts
It's been a good week for Middlefield Banc Corp. (NASDAQ:MBCN) shareholders, because the company has just released its latest quarterly results, and the shares gained 3.7% to US$22.60. Revenues were US$17m, approximately in line with whatthe analysts expected, although statutory earnings per share (EPS) crushed expectations, coming in at US$0.51, an impressive 23% ahead of estimates. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
Check out our latest analysis for Middlefield Banc
Taking into account the latest results, Middlefield Banc's four analysts currently expect revenues in 2024 to be US$67.8m, approximately in line with the last 12 months. Statutory earnings per share are expected to sink 17% to US$1.71 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$69.1m and earnings per share (EPS) of US$1.63 in 2024. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.
The average the analysts price target fell 8.1% to US$26.33, suggesting thatthe analysts have other concerns, and the improved earnings per share outlook was not enough to allay them. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Middlefield Banc, with the most bullish analyst valuing it at US$31.00 and the most bearish at US$23.00 per share. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Middlefield Banc's past performance and to peers in the same industry. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 0.7% by the end of 2024. This indicates a significant reduction from annual growth of 11% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 6.0% per year. It's pretty clear that Middlefield Banc's revenues are expected to perform substantially worse than the wider industry.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Middlefield Banc's earnings potential next year. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Middlefield Banc's revenue is expected to perform worse than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.
With that in mind, we wouldn't be too quick to come to a conclusion on Middlefield Banc. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Middlefield Banc going out to 2025, 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 1 warning sign with Middlefield Banc , and understanding it should be part of your investment process.
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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.
