It's been a good week for BOK Financial Corporation (NASDAQ:BOKF) shareholders, because the company has just released its latest second-quarter results, and the shares gained 8.6% to US$56.33. BOK Financial beat revenue forecasts by a solid 13% to hit US$513m. Statutory earnings per share fell 14% short of expectations, at US$0.92. 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've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
Taking into account the latest results, the consensus forecast from BOK Financial's ten analysts is for revenues of US$1.91b in 2020, which would reflect a notable 19% improvement in sales compared to the last 12 months. Statutory earnings per share are forecast to descend 11% to US$4.76 in the same period. Before this earnings report, the analysts had been forecasting revenues of US$1.82b and earnings per share (EPS) of US$4.42 in 2020. So there seems to have been a moderate uplift in sentiment following the latest results, given the upgrades to both revenue and earnings per share forecasts for next year.
With these upgrades, we're not surprised to see that the analysts have lifted their price target 6.2% to US$59.45per share. 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 BOK Financial, with the most bullish analyst valuing it at US$67.00 and the most bearish at US$50.00 per share. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the BOK Financial's past performance and to peers in the same industry. It's clear from the latest estimates that BOK Financial's rate of growth is expected to accelerate meaningfully, with the forecast 19% revenue growth noticeably faster than its historical growth of 6.2%p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 1.9% next year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect BOK Financial 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 BOK Financial following these results. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business 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.
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 2022, and you can see them free on our platform here.
Even so, be aware that BOK Financial is showing 2 warning signs in our investment analysis , you should know about...
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. 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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