Malvern Bancorp (MLVF) came out with quarterly profit of $ 0.30 per share, beating Zacks’ consensus estimate of $ 0.19 per share. This compares to a profit of $ 0.25 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents a surprise profit of 57.89%. A quarter ago, this holding company for Malvern Federal Savings Bank was expected to post a profit of $ 0.25 per share when it actually produced a profit of $ 0.30, offering a surprise by 20%.
In the past four quarters, the company has beaten consensus EPS estimates three times.
Malvern Bancorp, which is part of the Zacks Banks – Northeast industry, reported revenue of $ 7.97 million for the quarter ended March 2021, missing Zacks’ consensus estimate of 2.34%. This compares to revenue of $ 7.76 million a year ago. The company has beaten consensus revenue estimates twice in the past four quarters.
The sustainability of the immediate move in stock prices based on recently released numbers and future earnings forecasts will depend primarily on management comments on the profit call.
Shares of Malvern Bancorp have added about 21.3% year-to-date compared to the S&P 500’s 12.7% gain.
What’s next for Malvern Bancorp?
While Malvern Bancorp has outperformed the market so far this year, the question that comes to investors’ minds is, what’s next for the stock?
There are no easy answers to this key question, but the company’s earnings outlook is a reliable metric that can help investors address it. This not only includes the current consensus earnings forecast for the coming quarter (s), but also how those expectations have changed in recent times.
Empirical research shows a strong correlation between short-term stock market movements and trends in earnings estimate revisions. Investors can track these revisions on their own or rely on a proven scoring tool like Zacks Rank, which has impressive experience in harnessing the power of earnings estimate revisions.
Prior to the release of these results, the trend in estimate revisions for Malvern Bancorp was mixed. While the magnitude and direction of estimate revisions may change as a result of the company’s newly released earnings report, the current state results in a Zacks # 3 (Hold) rank for the stock. . Thus, stocks are expected to move in line with the market in the near future. You can see the full list of current Zacks # 1 Rank (Strong Buy) stocks here.
It will be interesting to see how the estimates for the coming quarters and the current year evolve in the days to come. The current consensus EPS estimate is $ 0.23 on $ 8.4 million of revenue for the next quarter and $ 1 on $ 33.07 million of revenue for the current year.
Investors should be aware that the outlook for the industry can also have a significant impact on the performance of the stock. In terms of Zacks industry rankings, Banks – Northeast is currently in the top 10% of the 250+ Zacks industries. Our research shows that the top 50% of industries ranked by Zacks outperform the bottom 50% by a factor of more than 2 to 1.
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