VSOlony Bankcorp (CBAN) exited with quarterly earnings of $0.30 per share, missing Zacks consensus estimate of $0.42 per share. That compares to earnings of $0.49 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents a profit surprise of -28.57%. A quarter ago, this bank holding company was expected to post a profit of $0.40 per share when it actually produced a profit of $0.37, delivering a surprise of -7, 50%.
In the past four quarters, the company has exceeded consensus EPS estimates only once.
The sustainability of the immediate stock price movement based on recently released numbers and future earnings forecasts will primarily depend on management’s comments on the earnings call.
Shares of Colony Bankcorp have lost about 9.7% year-to-date compared to a -16.9% drop for the S&P 500.
What’s next for Colony Bankcorp?
As Colony Bankcorp has outperformed the market so far this year, the question on investors’ minds is: what’s next for the stock?
There is no easy answer to this key question, but a reliable measure that can help investors answer it is the company’s earnings outlook. This includes not only current consensus earnings expectations for the upcoming quarter(s), but also how those expectations have changed recently.
Empirical research shows a strong correlation between short-term stock movements and trends in earnings estimate revisions. Investors can track these revisions on their own or rely on a proven scoring tool like Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Prior to this publication of the results, the trend of revisions of estimates for Colony Bankcorp: favorable. While the magnitude and direction of estimate revisions may change following the release of the company’s earnings report, the current situation results in a Zacks No. 2 (buy) ranking for the stock. Thus, stocks are expected to outperform the market in the near future. You can see the full list of today’s Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how the estimates for the next few quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.49 on $33.34 million in revenue for the upcoming quarter and $1.73 on $129.47 million in revenue for the current fiscal year.
Investors should be aware that the outlook for the sector can also have a significant impact on stock performance. In terms of Zacks industry ranking, Banks – Southeast is currently in the top 12% of Zacks 250+ industries. Our research shows that the top 50% of industries ranked by Zacks outperform the bottom 50% by a factor of more than 2 to 1.
Another stock in the same sector, United Bancorporation of Alabama, Inc. (UBAB), has yet to report results for the quarter ended June 2022.
This company is expected to post quarterly earnings of $0.75 per share in its next report, representing a year-over-year change of -66.2%. The consensus EPS estimate for the quarter has been revised up 1% in the last 30 days from the current level.
United Bancorporation of Alabama, Inc. revenue is expected to be $13.09 million, down 25.8% from the prior year quarter.
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