USCB Financial Holdings, Inc. Just Missed EPS By 7.7%: Here's What Analysts Think Will Happen Next

As you might know, USCB Financial Holdings, Inc. (NASDAQ:USCB) last week released its latest annual, and things did not turn out so great for shareholders. Results look to have been somewhat negative - revenue fell 6.3% short of analyst estimates at US$66m, and statutory earnings of US$1.00 per share missed forecasts by 7.7%. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

See our latest analysis for USCB Financial Holdings

Taking into account the latest results, the consensus forecast from USCB Financial Holdings' three analysts is for revenues of US$75.5m in 2023, which would reflect a meaningful 14% improvement in sales compared to the last 12 months. Statutory earnings per share are predicted to accumulate 8.7% to US$1.10. Before this earnings report, the analysts had been forecasting revenues of US$79.3m and earnings per share (EPS) of US$1.23 in 2023. The analysts seem less optimistic after the recent results, reducing their sales forecasts and making a real cut to earnings per share numbers.

The consensus price target fell 6.4% to US$14.67, with the weaker earnings outlook clearly leading valuation estimates. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic USCB Financial Holdings analyst has a price target of US$16.00 per share, while the most pessimistic values it at US$13.00. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The period to the end of 2023 brings more of the same, according to the analysts, with revenue forecast to display 14% growth on an annualised basis. That is in line with its 16% annual growth over the past three years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 6.5% annually. So it's pretty clear that USCB Financial Holdings is forecast to grow substantially faster than its industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple USCB Financial Holdings analysts - going out to 2024, and you can see them free on our platform here.

We also provide an overview of the USCB Financial Holdings Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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