SmartFinancial, Inc. (NASDAQ:SMBK) Second-Quarter Results: Here's What Analysts Are Forecasting For This Year

Investors in SmartFinancial, Inc. (NASDAQ:SMBK) had a good week, as its shares rose 8.0% to close at US$26.28 following the release of its quarterly results. It looks like the results were a bit of a negative overall. While revenues of US$40m were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 2.7% to hit US$0.61 per share. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for SmartFinancial

Following the latest results, SmartFinancial's six analysts are now forecasting revenues of US$167.9m in 2022. This would be a decent 14% improvement in sales compared to the last 12 months. Per-share earnings are expected to leap 25% to US$2.57. In the lead-up to this report, the analysts had been modelling revenues of US$166.7m and earnings per share (EPS) of US$2.55 in 2022. 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.

There were no changes to revenue or earnings estimates or the price target of US$31.33, suggesting that the company has met expectations in its recent result. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values SmartFinancial at US$33.50 per share, while the most bearish prices it at US$29.00. This is a very narrow spread of estimates, implying either that SmartFinancial is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the SmartFinancial's past performance and to peers in the same industry. It's clear from the latest estimates that SmartFinancial's rate of growth is expected to accelerate meaningfully, with the forecast 30% annualised revenue growth to the end of 2022 noticeably faster than its historical growth of 21% 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 7.6% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect SmartFinancial to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. 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. 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.

With that in mind, we wouldn't be too quick to come to a conclusion on SmartFinancial. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for SmartFinancial going out to 2024, and you can see them free on our platform here..

You still need to take note of risks, for example - SmartFinancial has 2 warning signs we think you should be aware of.

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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