Last week saw the newest annual earnings release from Investar Holding Corporation (NASDAQ:ISTR), an important milestone in the company's journey to build a stronger business. It was a workmanlike result, with revenues of US$94m coming in 3.2% ahead of expectations, and statutory earnings per share of US$2.13, in line with analyst appraisals. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Investar Holding after the latest results.

Taking into account the latest results, the current consensus from Investar Holding's three analysts is for revenues of US$152.5m in 2026. This would reflect a huge 63% increase on its revenue over the past 12 months. Per-share earnings are expected to soar 30% to US$2.91. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$154.6m and earnings per share (EPS) of US$2.51 in 2026. Although the revenue estimates have not really changed, we can see there's been a nice gain to earnings per share expectations, suggesting that the analysts have become more bullish after the latest result.

The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 5.5% to US$32.17. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Investar Holding analyst has a price target of US$34.00 per share, while the most pessimistic values it at US$31.00. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Investar Holding 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. The analysts are definitely expecting Investar Holding's growth to accelerate, with the forecast 63% annualised growth to the end of 2026 ranking favourably alongside historical growth of 2.6% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 9.0% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Investar Holding 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 Investar Holding 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. 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 Investar Holding. Long-term earnings power is much more important than next year's profits. We have forecasts for Investar Holding going out to 2027, and you can see them free on our platform here.

It might also be worth considering whether Investar Holding's debt load is appropriate, using our debt analysis tools on the Simply Wall St platform, here.

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.