Malvern Bancorp, Inc. (NASDAQ:MLVF) Just Reported, And Analysts Assigned A US$16.00 Price Target

Shareholders might have noticed that Malvern Bancorp, Inc. (NASDAQ:MLVF) filed its quarterly result this time last week. The early response was not positive, with shares down 6.7% to US$11.65 in the past week. Results look mixed - while revenue fell marginally short of analyst estimates at US$6.8m, statutory earnings were in line with expectations, at US$0.25 per share. 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. So we gathered the latest post-earnings forecasts to see what estimate suggests is in store for next year.

View our latest analysis for Malvern Bancorp

Following last week's earnings report, Malvern Bancorp's one analyst are forecasting 2020 revenues to be US$27.9m, approximately in line with the last 12 months. Statutory earnings per share are expected to crater 26% to US$0.78 in the same period. In the lead-up to this report, the analyst had been modelling revenues of US$28.6m and earnings per share (EPS) of US$1.13 in 2020. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a pretty serious reduction to earnings per share estimates.

The consensus price target fell 27% to US$16.00, with the weaker earnings outlook clearly leading valuation estimates.

Of course, another way to look at these forecasts is to place them into context against the industry itself. These estimates imply that sales are expected to slow, with a forecast revenue decline of 0.9%, a significant reduction from annual 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 2.6% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Malvern Bancorp is expected to lag the wider industry.

The Bottom Line

The biggest concern is that the analyst reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Malvern Bancorp. On the negative side, they also downgraded their revenue estimates, and forecasts imply revenues will perform worse than the wider industry. Furthermore, the analyst also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for Malvern Bancorp going out as far as 2021, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 2 warning signs for Malvern Bancorp you should be aware of.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.

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