One thing we could say about the analysts on Eagle Bancorp, Inc. (NASDAQ:EGBN) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. Revenue and earnings per share (EPS) forecasts were both revised downwards, with the analysts seeing grey clouds on the horizon.

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After the downgrade, the four analysts covering Eagle Bancorp are now predicting revenues of US$272m in 2025. If met, this would reflect a substantial 133% improvement in sales compared to the last 12 months. Per-share losses are expected to explode, reaching US$2.08 per share. Previously, the analysts had been modelling revenues of US$306m and earnings per share (EPS) of US$1.91 in 2025. There looks to have been a major change in sentiment regarding Eagle Bancorp's prospects, with a substantial drop in revenues and the analysts now forecasting a loss instead of a profit.

View our latest analysis for Eagle Bancorp

The consensus price target was broadly unchanged at US$22.56, perhaps implicitly signalling that the weaker earnings outlook is not expected to have a long-term impact on the valuation.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. One thing stands out from these estimates, which is that Eagle Bancorp is forecast to grow faster in the future than it has in the past, with revenues expected to display 4x annualised growth until the end of 2025. If achieved, this would be a much better result than the 10% 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 7.5% annually. So it looks like Eagle Bancorp is expected to grow faster than its competitors, at least for a while.

The Bottom Line

The most important thing to take away is that analysts are expecting Eagle Bancorp to become unprofitable this year. While analysts did downgrade their revenue estimates, these forecasts still imply revenues will perform better than the wider market. The lack of change in the price target is puzzling in light of the downgrade but, with a serious decline expected this year, we wouldn't be surprised if investors were a bit wary of Eagle Bancorp.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Eagle Bancorp going out to 2027, and you can see them free on our platform here.

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