As you might know, Southern First Bancshares, Inc. (NASDAQ:SFST) recently reported its full-year numbers. Results look mixed - while revenue fell marginally short of analyst estimates at US$86m, statutory earnings beat expectations 8.5%, with Southern First Bancshares reporting profits of US$1.66 per share. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Southern First Bancshares after the latest results.
Check out our latest analysis for Southern First Bancshares
Taking into account the latest results, the consensus forecast from Southern First Bancshares' two analysts is for revenues of US$98.8m in 2024. This reflects a solid 15% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to surge 24% to US$2.06. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$96.5m and earnings per share (EPS) of US$1.93 in 2024. So there seems to have been a moderate uplift in sentiment following the latest results, given the upgrades to both revenue and earnings per share forecasts for next year.
With these upgrades, we're not surprised to see that the analysts have lifted their price target 27% to US$42.75per share.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Southern First Bancshares' past performance and to peers in the same industry. It's clear from the latest estimates that Southern First Bancshares' rate of growth is expected to accelerate meaningfully, with the forecast 15% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 7.1% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 5.3% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Southern First Bancshares to grow faster than 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 Southern First Bancshares following these results. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.
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. At least one analyst has provided forecasts out to 2025, which can be seen for free on our platform here.
Before you take the next step you should know about the 1 warning sign for Southern First Bancshares that we have uncovered.
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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.