First Northwest Bancorp (NASDAQ:FNWB) investors will be delighted, with the company turning in some strong numbers with its latest results. It was overall a positive result, with revenues beating expectations by 5.3% to hit US$73m. First Northwest Bancorp reported statutory earnings per share (EPS) US$1.66, which was a notable 14% above what the analysts had forecast. This is an important time for investors, as they can track a company’s performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Taking into account the latest results, the most recent consensus for First Northwest Bancorp from dual analysts is for revenues of US$80.1m in 2022 which, if met, would be a decent 10% increase on its sales over the past 12 months. Statutory earnings per share are forecast to dive 22% to US$1.33 in the same period. Before this earnings report, the analysts had been forecasting revenues of US$75.6m and earnings per share (EPS) of US$1.33 in 2022. There doesn’t appear to have been a major change in sentiment following the results, other than the slight bump in revenue estimates.
The consensus price target increased 13% to US$24.50, with an improved revenue forecast carrying the promise of a more valuable business, in time.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the First Northwest Bancorp’s past performance and to peers in the same industry. It’s pretty clear that there is an expectation that First Northwest Bancorp’s revenue growth will slow down substantially, with revenues to the end of 2022 expected to display 10% growth on an annualised basis. This is compared to a historical growth rate of 14% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 4.9% per year. So it’s pretty clear that, while First Northwest Bancorp’s revenue growth is expected to slow, it’s still expected to grow faster than the industry itself.
The Bottom Line
The most important thing to take away is that there’s been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, they also upgraded their revenue estimates, and are forecasting revenues to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts 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 First Northwest Bancorp. Long-term earnings power is much more important than next year’s profits. We have analyst estimates for First Northwest Bancorp going out as far as 2023, and you can see them free on our platform here.
Plus, you should also learn about the 1 warning sign we’ve spotted with First Northwest Bancorp .
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