As you might know, Capital City Bank Group, Inc. (NASDAQ:CCBG) recently reported its full-year numbers. Results look mixed - while revenue fell marginally short of analyst estimates at US$212m, statutory earnings were in line with expectations, at US$2.36 per share. This is an important time for investors, as they can track a company's performance in its report, look at what experts 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 the analysts have changed their earnings models, following these results.
Check out our latest analysis for Capital City Bank Group
Taking into account the latest results, the current consensus from Capital City Bank Group's four analysts is for revenues of US$249.0m in 2023, which would reflect a notable 17% increase on its sales over the past 12 months. Per-share earnings are expected to shoot up 51% to US$3.57. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$246.0m and earnings per share (EPS) of US$3.42 in 2023. So the consensus seems to have become somewhat more optimistic on Capital City Bank Group's earnings potential following these results.
There's been no major changes to the consensus price target of US$38.00, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Capital City Bank Group, with the most bullish analyst valuing it at US$40.00 and the most bearish at US$34.00 per share. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Capital City Bank Group is an easy business to forecast or the the analysts are all using similar assumptions.
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 Capital City Bank Group's rate of growth is expected to accelerate meaningfully, with the forecast 17% annualised revenue growth to the end of 2023 noticeably faster than its historical growth of 11% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 6.5% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Capital City Bank Group is expected to grow much faster than its industry.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Capital City Bank Group's earnings potential next year. Fortunately, they also reconfirmed their revenue numbers, suggesting sales are tracking in line with expectations - and our data suggests that revenues are expected to grow faster than the wider industry. The consensus price target held steady at US$38.00, with the latest estimates not enough to have an impact on their price targets.
With that in mind, we wouldn't be too quick to come to a conclusion on Capital City Bank Group. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Capital City Bank Group analysts - going out to 2024, and you can see them free on our platform here.
That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 2 warning signs with Capital City Bank Group , and understanding these should be part of your investment process.
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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.