Earnings Miss: Carter Bankshares, Inc. Missed EPS By 35% And Analysts Are Revising Their Forecasts
Last week, you might have seen that Carter Bankshares, Inc. (NASDAQ:CARE) released its third-quarter result to the market. The early response was not positive, with shares down 5.1% to US$29.00 in the past week. It looks like a pretty bad result, all things considered. Although revenues of US$46m were in line with analyst predictions, statutory earnings fell badly short, missing estimates by 35% to hit US$0.35 per share. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Carter Bankshares after the latest results.
Following the recent earnings report, the consensus from twin analysts covering Carter Bankshares is for revenues of US$204.1m in 2027. This implies a substantial 29% decline in revenue compared to the last 12 months. Statutory earnings per share are expected to tumble 56% to US$2.59 in the same period. In the lead-up to this report, the analysts had been modelling revenues of US$204.1m and earnings per share (EPS) of US$2.60 in 2027. 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.
View our latest analysis for Carter Bankshares
There were no changes to revenue or earnings estimates or the price target of US$35.08, suggesting that the company has met expectations in its recent result.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Carter Bankshares' past performance and to peers in the same industry. We would highlight that revenue is expected to reverse, with a forecast 24% annualised decline to the end of 2027. That is a notable change from historical growth of 12% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 7.7% annually for the foreseeable future. It's pretty clear that Carter Bankshares' revenues are expected to perform substantially worse 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. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Carter Bankshares' revenue is expected to perform worse than the wider industry. The consensus price target held steady at US$35.08, with the latest estimates not enough to have an impact on their price targets.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2028, which can be seen for free on our platform here.
Before you take the next step you should know about the 2 warning signs for Carter Bankshares (1 makes us a bit uncomfortable!) that we have uncovered.
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