West Bancorporation, Inc. (NASDAQ:WTBA) last week reported its latest quarterly results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. The result was positive overall - although revenues of US$27m were in line with what the analysts predicted, West Bancorporation surprised by delivering a statutory profit of US$0.61 per share, modestly greater than expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are 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 estimates suggest is in store for next year.
After the latest results, the dual analysts covering West Bancorporation are now predicting revenues of US$114.4m in 2026. If met, this would reflect a solid 15% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to bounce 27% to US$2.63. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$115.6m and earnings per share (EPS) of US$2.55 in 2026. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.
View our latest analysis for West Bancorporation
The consensus price target was unchanged at US$25.75, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the West Bancorporation's past performance and to peers in the same industry. 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 3.5% annual decline over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 8.6% annually. Not only are West Bancorporation's revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.
The Bottom Line
The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards West Bancorporation following these results. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at US$25.75, with the latest estimates not enough to have an impact on their price targets.
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. We have analyst estimates for West Bancorporation going out as far as 2027, and you can see them free on our platform here.
You can also see whether West Bancorporation 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.