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Here's What Analysts Are Forecasting For Bank of Marin Bancorp After Its Full-Year Results

Bank of Marin Bancorp (NASDAQ:BMRC) last week reported its latest annual results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. Bank of Marin Bancorp reported US$104m in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of US$2.48 beat expectations, being 2.1% higher than what analysts expected. Earnings are an important time for investors, as they can track a company's performance, look at what top analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We thought readers would find it interesting to see analysts' latest (statutory) post-earnings forecasts for next year.

Check out our latest analysis for Bank of Marin Bancorp

NasdaqCM:BMRC Past and Future Earnings, January 30th 2020
NasdaqCM:BMRC Past and Future Earnings, January 30th 2020

Following last week's earnings report, Bank of Marin Bancorp's five analysts are forecasting 2020 revenues to be US$104.0m, approximately in line with the last 12 months. Statutory per-share earnings are expected to be US$2.48, roughly flat on the last 12 months. Yet prior to the latest earnings, analysts had been forecasting revenues of US$103.5m and earnings per share (EPS) of US$2.41 in 2020. Analysts seem to have become more bullish on the business, judging by their new earnings per share estimates.

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There's been no major changes to the consensus price target of US$45.25, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. 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. Currently, the most bullish analyst values Bank of Marin Bancorp at US$47.00 per share, while the most bearish prices it at US$43.00. Still, with such a tight range of estimates, it suggests analysts have a pretty good idea of what they think the company is worth.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that Bank of Marin Bancorp's revenue growth is expected to slow, with forecast 0.1% increase next year well below the historical 7.2%p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the market, which are in aggregate expected to see revenue growth of 5.1% next year. Factoring in the forecast slowdown in growth, it seems obvious that analysts still expect Bank of Marin Bancorp to grow slower than the wider market.

The Bottom Line

The most important thing to take away from this is that analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Bank of Marin Bancorp following these results. On the plus side, there were no major changes to revenue estimates; although analyst forecasts imply revenues will perform worse 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. At Simply Wall St, we have a full range of analyst estimates for Bank of Marin Bancorp going out to 2021, and you can see them free on our platform here..

We also provide an overview of the Bank of Marin Bancorp Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, 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.