HBT Financial, Inc. (NASDAQ:HBT) last week reported its latest yearly results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. Revenues came in 2.7% below expectations, at US$225m. Statutory earnings per share were relatively better off, with a per-share profit of US$2.07 being roughly in line with analyst 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
View our latest analysis for HBT Financial
Following last week's earnings report, HBT Financial's five analysts are forecasting 2024 revenues to be US$228.3m, approximately in line with the last 12 months. Per-share earnings are expected to increase 5.5% to US$2.19. Before this earnings report, the analysts had been forecasting revenues of US$230.0m and earnings per share (EPS) of US$2.21 in 2024. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
The analysts reconfirmed their price target of US$23.13, showing that the business is executing well and in line with expectations. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on HBT Financial, with the most bullish analyst valuing it at US$25.00 and the most bearish at US$21.50 per share. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that HBT Financial's revenue growth is expected to slow, with the forecast 1.3% annualised growth rate until the end of 2024 being well below the historical 7.4% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 5.6% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than HBT Financial.
The Bottom Line
The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that HBT Financial's revenue is expected to perform worse than the wider industry. The consensus price target held steady at US$23.13, with the latest estimates not enough to have an impact on their price targets.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for HBT Financial going out to 2025, and you can see them free on our platform here.
However, before you get too enthused, we've discovered 2 warning signs for HBT Financial that you should be aware of.
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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.