Bridgewater Bancshares, Inc. (NASDAQ:BWB) came out with its yearly results last week, and we wanted to see how the business is performing and what top analysts think of the company following this report. Bridgewater Bancshares reported US$75m in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of US$1.05 beat expectations, being 2.4% higher than what analysts expected. 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. So we gathered the latest post-earnings forecasts to see what analysts' statutory forecasts suggest is in store for next year.
Taking into account the latest results, the most recent consensus for Bridgewater Bancshares from three analysts is for revenues of US$85.8m in 2020, which is a notable 14% increase on its sales over the past 12 months. Statutory earnings per share are expected to accumulate 2.5% to US$1.10. Yet prior to the latest earnings, analysts had been forecasting revenues of US$84.6m and earnings per share (EPS) of US$1.08 in 2020. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
It will come as no surprise then, to learn that the consensus price target is largely unchanged at US$15.33. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Bridgewater Bancshares analyst has a price target of US$16.00 per share, while the most pessimistic values it at US$15.00. 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.
Another way to assess these estimates is by comparing them to past performance, and seeing whether analysts are more or less bullish relative to other companies in the market. We can infer from the latest estimates that analysts are expecting a continuation of Bridgewater Bancshares's historical trends, as next year's forecast 14% revenue growth is roughly in line with 17% annual revenue growth over the past three years. Compare this with the wider market, which analyst estimates (in aggregate) suggest will see revenues grow 4.6% next year. So although Bridgewater Bancshares is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider market.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with analysts reconfirming that earnings per share are expected to continue performing in line with their prior expectations. Happily, there were no major changes to revenue forecasts, with analysts still expecting the business to grow faster than the wider market. The consensus price target held steady at US$15.33, with the latest estimates not enough to have an impact on analysts' estimated valuations.
Still, the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Bridgewater Bancshares analysts - going out to 2021, and you can see them free on our platform here.
You can also view our analysis of Bridgewater Bancshares's balance sheet, and whether we think Bridgewater Bancshares is carrying too much debt, for free on our platform here.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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.
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