FinWise Bancorp (NASDAQ:FINW) shareholders will have a reason to smile today, with the analysts making substantial upgrades to next year’s statutory forecasts. The analysts have sharply increased their revenue numbers, with a view that FinWise Bancorp will make substantially more sales than they’d previously expected. The market may be pricing in some blue sky too, with the share price gaining 21% to US$13.08 in the last 7 days. Could this upgrade be enough to drive the stock even higher?
Following the upgrade, the latest consensus from FinWise Bancorp’s three analysts is for revenues of US$261m in 2027, which would reflect a sizeable 83% improvement in sales compared to the last 12 months. Statutory earnings per share are anticipated to crater 27% to US$1.02 in the same period. Prior to this update, the analysts had been forecasting revenues of US$213m and earnings per share (EPS) of US$0.99 in 2027. Sentiment certainly seems to have improved in recent times, with a considerable lift to revenue and a slight bump in earnings per share estimates.
See our latest analysis for FinWise Bancorp
Although the analysts have upgraded their earnings estimates, there was no change to the consensus price target of US$16.00, suggesting that the forecast performance does not have a long term impact on the company’s valuation.
Of course, another way to look at these forecasts is to place them into context against the industry itself. It’s clear from the latest estimates that FinWise Bancorp’s rate of growth is expected to accelerate meaningfully, with the forecast 62% annualised revenue growth to the end of 2027 noticeably faster than its historical growth of 10% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 7.7% per year. Factoring in the forecast acceleration in revenue, it’s pretty clear that FinWise Bancorp is expected to grow much faster than its industry.
The Bottom Line
The biggest takeaway for us from these new estimates is that analysts upgraded their earnings per share estimates, with improved earnings power expected for next year. They also upgraded their revenue estimates for next year, and sales are expected to grow faster than the wider market. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at FinWise Bancorp.
With that said, the long-term trajectory of the company’s earnings is a lot more important than next year. We have estimates – from multiple FinWise Bancorp analysts – going out to 2028, and you can see them free on our platform here.
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