It’s been a good week for Bridgewater Bancshares, Inc. (NASDAQ:BWB) shareholders as the company just released its latest annual results, and shares gained 4.3% to US$17.99. It was an overall credible result, with revenue of $110 million and statutory earnings per share of $1.54, both in line with analysts’ estimates, showing that Bridgewater Bancshares is executing in line with expectations. Earnings are an important time for investors because they can follow a company’s performance, watch what analysts predict for the next year, and see if there has been a change in sentiment towards the company. With that in mind, we’ve rounded up the latest statutory forecasts to see what analysts expect for next year.
Given the latest results, the current consensus of Bridgewater Bancshares’ three analysts is for revenue of $123.3 million in 2022, which would reflect a decent 12% increase in sales over the past 12 months. Earnings per share are expected to rise 3.3% to US$1.63. Looking ahead to this report, analysts had modeled revenue of US$123.9 million and earnings per share (EPS) of US$1.58 in 2022. Analysts appear to have become more bullish on the business, judging by their new earnings per share estimates.
The consensus price target remained unchanged at US$21.33, meaning the improved earnings outlook should not have a long-term impact on shareholder value creation. There is, however, another way to think about price targets, and that is to look at the range of price targets offered by analysts, as a wide range of estimates could suggest a diverse view of possible outcomes for the market. company. The most optimistic Bridgewater Bancshares analyst has a price target of US$22.00 per share, while the most pessimistic puts it at US$20.00. With such a narrow valuation range, analysts apparently share similar views on what they think the company is worth.
One way to get more context on these forecasts is to examine how they compare both to past performance and to the performance of other companies in the same industry. We note that revenue growth at Bridgewater Bancshares is expected to slow, with the projected annualized growth rate of 12% through the end of 2022 being well below the historic growth of 17% per year over the past five years. Compare that with other companies in the same industry, which are expected to see a decline in revenue of 1.5% per year. It is therefore clear that despite the slowdown in growth, Bridgewater Bancshares is still expected to grow much faster than the industry as a whole.
The biggest lesson for us is the consensus rise in earnings per share, which suggests a marked improvement in sentiment around Bridgewater Bancshares’ earnings potential next year. Fortunately, they also reconfirmed their revenue estimates, suggesting sales are in line with expectations. Their estimates also suggest Bridgewater Bancshares’ earnings should perform better than the broader industry. There was no real change from the consensus price target, suggesting that the company’s intrinsic value has not undergone major changes with the latest estimates.
With that in mind, we wouldn’t be too quick to come to a conclusion on Bridgewater Bancshares. Long-term earnings power is much more important than next year’s earnings. We have predictions for Bridgewater Bancshares through 2023, and you can view them for free on our platform here.
You can also view our analysis of Bridgewater Bancshares board and CEO compensation and experience, and whether any company insiders have bought shares.
Feedback on this article? Concerned about content? Get in touch with us directly. You can also email the editorial team (at) Simplywallst.com.
This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.