Banner Corporation (NASDAQ:BANR) shares fell 3.6% to US$52.87 in the week since its latest annual results. Results were roughly in line with estimates, with revenues of US$541m and statutory earnings per share of US$4.18. This is an important time for investors, as they can track a company's performance in its report, look at what top analysts are forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we've gathered the latest statutory forecasts to see what analysts are expecting for next year.
Following last week's earnings report, Banner's five analysts are forecasting 2020 revenues to be US$551.6m, approximately in line with the last 12 months. Statutory earnings per share are forecast to reduce 4.1% to US$4.02 in the same period. In the lead-up to this report, analysts had been modelling revenues of US$558.9m and earnings per share (EPS) of US$4.05 in 2020. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
Analysts reconfirmed their price target of US$60.33, showing that the business is executing well and in line with expectations. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Banner analyst has a price target of US$62.00 per share, while the most pessimistic values it at US$59.00. Still, with such a tight range of estimates, it suggests analysts have a pretty good idea of what they think the company is worth.
In addition, we can look to Banner's past performance and see whether business is expected to improve, and if the company is expected to perform better than wider market. It's pretty clear that analysts expect Banner's revenue growth will slow down substantially, with revenues next year expected to grow 2.0%, compared to a historical growth rate of 15% over the past five years. Compare this against other companies (with analyst forecasts) in the market, which are in aggregate expected to see revenue growth of 4.9% next year. Factoring in the forecast slowdown in growth, it seems obvious that analysts still expect Banner to grow slower than the wider market.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with analysts reconfirming that earnings per share are expected to continue performing in line with their prior expectations. On the plus side, there were no major changes to revenue estimates; although analyst forecasts imply revenues will perform worse than the wider market. The consensus price target held steady at US$60.33, with the latest estimates not enough to have an impact on analysts' estimated valuations.
Still, the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Banner going out to 2021, and you can see them free on our platform here..
You can also see whether Banner is carrying too much debt, and whether its balance sheet is healthy, for free on our platform here.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.