Time To Worry? Analysts Are Downgrading Their Territorial Bancorp Inc. (NASDAQ:TBNK) Outlook
Market forces rained on the parade of Territorial Bancorp Inc. (NASDAQ:TBNK) shareholders today, when the analysts downgraded their forecasts for this year. Revenue and earnings per share (EPS) forecasts were both revised downwards, with analysts seeing grey clouds on the horizon.
Following the latest downgrade, the three analysts covering Territorial Bancorp provided consensus estimates of US$52m revenue in 2023, which would reflect a not inconsiderable 13% decline on its sales over the past 12 months. Statutory earnings per share are anticipated to tumble 36% to US$1.18 in the same period. Before this latest update, the analysts had been forecasting revenues of US$59m and earnings per share (EPS) of US$1.61 in 2023. Indeed, we can see that the analysts are a lot more bearish about Territorial Bancorp's prospects, administering a substantial drop in revenue estimates and slashing their EPS estimates to boot.
Check out our latest analysis for Territorial Bancorp
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. One more thing stood out to us about these estimates, and it's the idea that Territorial Bancorp's decline is expected to accelerate, with revenues forecast to fall at an annualised rate of 13% to the end of 2023. This tops off a historical decline of 0.8% a year over the past five years. Compare this against analyst estimates for companies in the broader industry, which suggest that revenues (in aggregate) are expected to grow 6.6% annually. So it's pretty clear that, while it does have declining revenues, the analysts also expect Territorial Bancorp to suffer worse than the wider industry.
The Bottom Line
The biggest issue in the new estimates is that analysts have reduced their earnings per share estimates, suggesting business headwinds lay ahead for Territorial Bancorp. Unfortunately analysts also downgraded their revenue estimates, and industry data suggests that Territorial Bancorp's revenues are expected to grow slower than the wider market. Given the serious cut to this year's outlook, it's clear that analysts have turned more bearish on Territorial Bancorp, and we wouldn't blame shareholders for feeling a little more cautious themselves.
Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. At Simply Wall St, we have a full range of analyst estimates for Territorial Bancorp going out to 2024, and you can see them free on our platform here.
Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are downgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.
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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