West Bancorporation, Inc. Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

As you might know, West Bancorporation, Inc. (NASDAQ:WTBA) last week released its latest full-year, and things did not turn out so great for shareholders. Results look to have been somewhat negative - revenue fell 3.6% short of analyst estimates at US$95m, and statutory earnings of US$1.92 per share missed forecasts by 5.9%. Earnings are an important time for investors, as they can track a company's performance, look at what the analyst is forecasting for next year, and see if there's been a change in sentiment towards the company. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analyst has changed their mind on West Bancorporation after the latest results.

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Following the latest results, West Bancorporation's solitary analyst are now forecasting revenues of US$115.5m in 2026. This would be a substantial 21% improvement in revenue compared to the last 12 months. Per-share earnings are expected to leap 33% to US$2.55. Before this earnings report, the analyst had been forecasting revenues of US$112.5m and earnings per share (EPS) of US$2.40 in 2026. So there seems to have been a moderate uplift in sentiment following the latest results, given the upgrades to both revenue and earnings per share forecasts for next year.

See our latest analysis for West Bancorporation

Althoughthe analyst has upgraded their earnings estimates, there was no change to the consensus price target of US$26.00, suggesting that the forecast performance does not have a long term impact on the company's valuation.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. One thing stands out from these estimates, which is that West Bancorporation is forecast to grow faster in the future than it has in the past, with revenues expected to display 21% annualised growth until the end of 2026. If achieved, this would be a much better result than the 3.4% annual decline over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 8.8% per year. So it looks like West Bancorporation is expected to grow faster than its competitors, at least for a while.

The Bottom Line

The most important thing here is that the analyst upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards West Bancorporation following these results. Happily, they also upgraded their revenue estimates, and are forecasting them 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.

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. At least one analyst has provided forecasts out to 2027, which can be seen for free on our platform here.

And what about risks? Every company has them, and we've spotted 1 warning sign for West Bancorporation you should know about.

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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.