It's been a good week for Finward Bancorp (NASDAQ:FNWD) shareholders, because the company has just released its latest quarterly results, and the shares gained 9.8% to US$28.70. Revenues of US$15m reported a marginal miss, falling short of forecasts by 4.4%, but earnings were better than expected - statutory profits came in at US$0.03 per share, a nice change from the loss the analyst expected. Following the result, the analyst has 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. So we collected the latest post-earnings statutory consensus estimate to see what could be in store for next year.

View our latest analysis for Finward Bancorp

After the latest results, the single analyst covering Finward Bancorp are now predicting revenues of US$73.1m in 2024. If met, this would reflect a credible 4.4% improvement in revenue compared to the last 12 months. Statutory earnings per share are expected to decline 15% to US$2.58 in the same period. Yet prior to the latest earnings, the analyst had been anticipated revenues of US$72.4m and earnings per share (EPS) of US$2.10 in 2024. There was no real change to the revenue estimates, but the analyst does seem more bullish on earnings, given the massive increase in earnings per share expectations following these results.

The consensus price target rose 22% to US$32.00, suggesting that higher earnings estimates flow through to the stock's valuation as well.

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 can infer from the latest estimates that forecasts expect a continuation of Finward Bancorp'shistorical trends, as the 8.9% annualised revenue growth to the end of 2024 is roughly in line with the 7.8% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 6.4% annually. So it's pretty clear that Finward Bancorp is forecast to grow substantially 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 Finward Bancorp's earnings potential next year. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analyst believes the intrinsic value of the business is likely to improve over time.

With that in mind, we wouldn't be too quick to come to a conclusion on Finward Bancorp. Long-term earnings power is much more important than next year's profits. We have analyst estimates for Finward Bancorp going out as far as 2025, and you can see them free on our platform here.

Plus, you should also learn about the 2 warning signs we've spotted with Finward Bancorp (including 1 which makes us a bit uncomfortable) .

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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.

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