Yahoo Finance Analysts Have Made A Financial Statement On Peoples Bancorp Inc.'s (NASDAQ:PEBO) First-Quarter Report
As you might know, Peoples Bancorp Inc. (NASDAQ:PEBO) just kicked off its latest quarterly results with some very strong numbers. Results were good overall, with revenues beating analyst predictions by 3.1% to hit US$113m. Statutory earnings per share (EPS) came in at US$0.84, some 5.0% above whatthe analysts had expected. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
See our latest analysis for Peoples Bancorp
Following the latest results, Peoples Bancorp's seven analysts are now forecasting revenues of US$444.7m in 2024. This would be an okay 4.0% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to increase 2.3% to US$3.39. In the lead-up to this report, the analysts had been modelling revenues of US$440.3m and earnings per share (EPS) of US$3.33 in 2024. So the consensus seems to have become somewhat more optimistic on Peoples Bancorp's earnings potential following these results.
The consensus price target was unchanged at US$33.83, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. 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. Currently, the most bullish analyst values Peoples Bancorp at US$37.00 per share, while the most bearish prices it at US$31.00. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.
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. It's pretty clear that there is an expectation that Peoples Bancorp's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 5.4% growth on an annualised basis. This is compared to a historical growth rate of 20% over the past five years. Compare this to the 692 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 6.0% per year. Factoring in the forecast slowdown in growth, it looks like Peoples Bancorp is forecast to grow at about the same rate as 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 Peoples Bancorp following these results. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at US$33.83, with the latest estimates not enough to have an impact on their price targets.
With that in mind, we wouldn't be too quick to come to a conclusion on Peoples Bancorp. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Peoples Bancorp analysts - going out to 2025, and you can see them free on our platform here.
That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with Peoples Bancorp , and understanding this should be part of your investment process.
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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.
