OceanFirst Financial Corp. (NASDAQ:OCFC) shares fell 5.7% to US$23.26 in the week since its latest full-year results. It looks like the results were a bit of a negative overall. While revenues of US$297m were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 2.6% to hit US$1.75 per share. This is an important time for investors, as they can track a company's performance in its report, look at what top analysts are forecasting for next year, and see if there has been any change to expectations for the business. We've gathered the most recent statutory forecasts to see whether analysts have changed their earnings models, following these results.
See our latest analysis for OceanFirst Financial
Taking into account the latest results, the latest consensus from OceanFirst Financial's seven analysts is for revenues of US$362.6m in 2020, which would reflect a sizeable 22% improvement in sales compared to the last 12 months. Statutory earnings per share are expected to accumulate 6.9% to US$1.89. In the lead-up to this report, analysts had been modelling revenues of US$358.1m and earnings per share (EPS) of US$1.89 in 2020. So it's pretty clear that, although analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
It will come as no surprise then, to learn that the consensus price target is largely unchanged at US$27.07. The consensus price target just an average of individual analyst targets, so - considering that the price target changed, it would be handy to see how wide the range of underlying estimates is. The most optimistic OceanFirst Financial analyst has a price target of US$30.00 per share, while the most pessimistic values it at US$25.00. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or that analysts have a clear view on its prospects.
It can be useful to take a broader overview by seeing how analyst forecasts compare, both to the OceanFirst Financial's past performance and to peers in the same market. It's pretty clear that analysts expect OceanFirst Financial's revenue growth will slow down substantially, with revenues next year expected to grow 22%, compared to a historical growth rate of 28% over the past five years. By way of comparison, other companies in this market with analyst coverage, are forecast to grow their revenue at 3.7% next year. Even after the forecast slowdown in growth, it seems obvious that analysts still thinkOceanFirst Financial will grow faster than the wider market.
The Bottom Line
The most obvious conclusion from these results is that there's been no major change in the business' prospects in recent times, with analysts holding earnings per share steady, in line with previous estimates. Happily, there were no major changes to revenue forecasts, with analysts still expecting the business to grow faster than the wider market. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. We have forecasts for OceanFirst Financial going out to 2021, and you can see them free on our platform here.
It might also be worth considering whether OceanFirst Financial's debt load is appropriate, using our debt analysis tools on the Simply Wall St platform, here.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.
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OceanFirst Financial Corp. Just Released Its Yearly Results And Analysts Are Updating Their Estimates - Yahoo Finance
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