It's been a good week for CVB Financial Corp. (NASDAQ:CVBF) shareholders, because the company has just released its latest quarterly results, and the shares gained 5.4% to US$20.04. The result was positive overall - although revenues of US$126m were in line with what the analysts predicted, CVB Financial surprised by delivering a statutory profit of US$0.36 per share, modestly greater than expected. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Taking into account the latest results, the seven analysts covering CVB Financial provided consensus estimates of US$505.7m revenue in 2024, which would reflect a perceptible 4.2% decline over the past 12 months. Statutory earnings per share are forecast to dip 3.8% to US$1.40 in the same period. Before this earnings report, the analysts had been forecasting revenues of US$514.4m and earnings per share (EPS) of US$1.41 in 2024. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

The consensus price target rose 7.2% to US$20.83despite there being no meaningful change to earnings estimates. It could be that the analystsare reflecting the predictability of CVB Financial's earnings by assigning a price premium. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on CVB Financial, with the most bullish analyst valuing it at US$25.00 and the most bearish at US$19.00 per share. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting CVB Financial is an easy business to forecast or the the analysts are all using similar assumptions.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that revenue is expected to reverse, with a forecast 8.2% annualised decline to the end of 2024. That is a notable change from historical growth of 4.1% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 6.3% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - CVB Financial is expected to lag the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

With that in mind, we wouldn't be too quick to come to a conclusion on CVB Financial. Long-term earnings power is much more important than next year's profits. We have forecasts for CVB Financial going out to 2025, and you can see them free on our platform here.

You can also see whether CVB Financial 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com