QCR Holdings, Inc. Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next

Simply Wall St.
27 Oct 2024

Last week, you might have seen that QCR Holdings, Inc. (NASDAQ:QCRH) released its third-quarter result to the market. The early response was not positive, with shares down 2.6% to US$78.66 in the past week. QCR Holdings missed revenue estimates by 4.7%, coming in atUS$87m, although statutory earnings per share (EPS) of US$1.64 beat expectations, coming in 8.9% ahead of 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

See our latest analysis for QCR Holdings

NasdaqGM:QCRH Earnings and Revenue Growth October 27th 2024

After the latest results, the five analysts covering QCR Holdings are now predicting revenues of US$391.6m in 2025. If met, this would reflect a notable 15% improvement in revenue compared to the last 12 months. Statutory earnings per share are expected to reduce 2.1% to US$6.76 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$387.6m and earnings per share (EPS) of US$6.63 in 2025. 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$88.80, 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 QCR Holdings at US$92.00 per share, while the most bearish prices it at US$85.00. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

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 QCR Holdings'historical trends, as the 12% annualised revenue growth to the end of 2025 is roughly in line with the 11% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 6.7% per year. So although QCR Holdings is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

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. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at US$88.80, with the latest estimates not enough to have an impact on their price targets.

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. We have estimates - from multiple QCR Holdings analysts - going out to 2026, and you can see them free on our platform here.

You can also see whether QCR Holdings is carrying too much debt, and whether its balance sheet is healthy, for free on our platform here.

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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.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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