Yahoo Finance ABN AMRO Bank N.V. (AMS:ABN) Third-Quarter Results: Here's What Analysts Are Forecasting For Next Year
Investors in ABN AMRO Bank N.V. (AMS:ABN) had a good week, as its shares rose 8.5% to close at €11.31 following the release of its quarterly results. Revenues were €2.2b, and ABN AMRO Bank came in a solid 18% ahead of expectations. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
See our latest analysis for ABN AMRO Bank
Taking into account the latest results, the 18 analysts covering ABN AMRO Bank provided consensus estimates of €7.59b revenue in 2023, which would reflect a discernible 6.7% decline on its sales over the past 12 months. Statutory earnings per share are forecast to tumble 40% to €1.32 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of €7.49b and earnings per share (EPS) of €1.29 in 2023. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.
There's been no major changes to the consensus price target of €13.44, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. 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. There are some variant perceptions on ABN AMRO Bank, with the most bullish analyst valuing it at €17.00 and the most bearish at €9.50 per share. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.
Of course, another way to look at these forecasts is to place them into context against the industry itself. One thing that stands out from these estimates is that revenues are expected to keep falling until the end of 2023, roughly in line with the historical decline of 5.7% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 5.2% per year. So it's pretty clear that, while it does have declining revenues, the analysts also expect ABN AMRO Bank to suffer worse than the wider industry.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around ABN AMRO Bank's earnings potential next year. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting sales are tracking in line with expectations - although our data does suggest that ABN AMRO Bank's revenues are expected to perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
With that in mind, we wouldn't be too quick to come to a conclusion on ABN AMRO Bank. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for ABN AMRO Bank going out to 2024, and you can see them free on our platform here..
Don't forget that there may still be risks. For instance, we've identified 1 warning sign for ABN AMRO Bank that you should be aware of.
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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.
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