Advertisement
Singapore markets open in 6 hours 22 minutes
  • Straits Times Index

    3,437.26
    -10.30 (-0.30%)
     
  • S&P 500

    5,570.08
    +65.08 (+1.18%)
     
  • Dow

    40,424.47
    +136.94 (+0.34%)
     
  • Nasdaq

    18,038.72
    +311.78 (+1.76%)
     
  • Bitcoin USD

    67,404.90
    +400.08 (+0.60%)
     
  • CMC Crypto 200

    1,388.10
    -17.23 (-1.23%)
     
  • FTSE 100

    8,198.78
    +43.06 (+0.53%)
     
  • Gold

    2,396.00
    -3.10 (-0.13%)
     
  • Crude Oil

    79.95
    -0.18 (-0.22%)
     
  • 10-Yr Bond

    4.2600
    +0.0210 (+0.50%)
     
  • Nikkei

    39,599.00
    -464.79 (-1.16%)
     
  • Hang Seng

    17,635.88
    +218.20 (+1.25%)
     
  • FTSE Bursa Malaysia

    1,622.07
    -14.48 (-0.88%)
     
  • Jakarta Composite Index

    7,321.98
    +27.48 (+0.38%)
     
  • PSE Index

    6,712.05
    -79.64 (-1.17%)
     

Camden National Corporation Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next

It's been a good week for Camden National Corporation (NASDAQ:CAC) shareholders, because the company has just released its latest quarterly results, and the shares gained 5.0% to US$32.03. Revenues were US$42m, approximately in line with whatthe analysts expected, although statutory earnings per share (EPS) crushed expectations, coming in at US$0.91, an impressive 29% ahead of estimates. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Camden National after the latest results.

Check out our latest analysis for Camden National

earnings-and-revenue-growth
earnings-and-revenue-growth

Taking into account the latest results, the most recent consensus for Camden National from four analysts is for revenues of US$169.8m in 2024. If met, it would imply an okay 4.4% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to increase 3.2% to US$3.10. In the lead-up to this report, the analysts had been modelling revenues of US$171.9m and earnings per share (EPS) of US$3.03 in 2024. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

ADVERTISEMENT

There's been no major changes to the consensus price target of US$35.33, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. 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 Camden National analyst has a price target of US$37.00 per share, while the most pessimistic values it at US$34.00. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's clear from the latest estimates that Camden National's rate of growth is expected to accelerate meaningfully, with the forecast 5.9% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 1.2% p.a. over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 6.0% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Camden National is expected to grow at about the same rate as the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Camden National following these results. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. 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.

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 Camden National analysts - going out to 2025, and you can see them free on our platform here.

It might also be worth considering whether Camden National's debt load is appropriate, using our debt analysis tools on the Simply Wall St platform, 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.