The BOK Financial Corporation (NASDAQ:BOKF) Yearly Results Are Out And Analysts Have Published New Forecasts
It's been a good week for BOK Financial Corporation (NASDAQ:BOKF) shareholders, because the company has just released its latest full-year results, and the shares gained 3.5% to US$85.49. Revenues of US$2.0b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at US$8.02, missing estimates by 3.8%. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
See our latest analysis for BOK Financial
Following last week's earnings report, BOK Financial's ten analysts are forecasting 2024 revenues to be US$2.02b, approximately in line with the last 12 months. Statutory earnings per share are expected to decrease 9.6% to US$7.31 in the same period. Before this earnings report, the analysts had been forecasting revenues of US$2.00b and earnings per share (EPS) of US$7.12 in 2024. 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 US$88.89, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values BOK Financial at US$98.00 per share, while the most bearish prices it at US$74.00. This is a very narrow spread of estimates, implying either that BOK Financial is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.
Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that BOK Financial's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 0.2% growth on an annualised basis. This is compared to a historical growth rate of 4.3% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 5.6% per year. Factoring in the forecast slowdown in growth, it seems obvious that BOK Financial is also expected to grow slower than other industry participants.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around BOK Financial's earnings potential next year. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that BOK Financial's revenue is expected to perform worse than the wider industry. The consensus price target held steady at US$88.89, with the latest estimates not enough to have an impact on their price targets.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple BOK Financial analysts - going out to 2026, 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 BOK Financial 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.
