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Last week, you might have seen that Glacier Bancorp, Inc. (NASDAQ:GBCI) released its annual result to the market. The early response was not positive, with shares down 2.7% to US$44.01 in the past week. Glacier Bancorp reported in line with analyst predictions, delivering revenues of US$634m and statutory earnings per share of US$2.38, suggesting the business is executing well and in line with its plan. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether analysts have changed their mind on Glacier Bancorp after the latest results.
Taking into account the latest results, the current consensus from Glacier Bancorp's seven analysts is for revenues of US$697.4m in 2020, which would reflect a notable 10.0% increase on its sales over the past 12 months. Statutory earnings per share are expected to ascend 10% to US$2.52. In the lead-up to this report, analysts had been modelling revenues of US$699.6m and earnings per share (EPS) of US$2.39 in 2020. Analysts seem 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$45.00, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Glacier Bancorp analyst has a price target of US$48.00 per share, while the most pessimistic values it at US$42.00. Still, with such a tight range of estimates, it suggests analysts have a pretty good idea of what they think the company is worth.
Another way to assess these estimates is by comparing them to past performance, and seeing whether analysts are more or less bullish relative to other companies in the market. Next year brings more of the same, according to analysts, with revenue forecast to grow 10.0%, in line with its 11% annual growth over the past five years. Compare this with the wider market, which analyst estimates (in aggregate) suggest will see revenues grow 4.9% next year. So it's pretty clear that Glacier Bancorp is forecast to grow substantially faster than its market.
The Bottom Line
The biggest takeaway for us from these new estimates is that the consensus upgraded its earnings per share estimates, showing a clear improvement in sentiment around Glacier Bancorp's earnings potential next year. Fortunately, analysts also reconfirmed their revenue estimates, suggesting sales are tracking in line with expectations - and our data does suggest that Glacier Bancorp's revenues are expected to grow faster than the wider market. The consensus price target held steady at US$45.00, with the latest estimates not enough to have an impact on analysts' estimated valuations.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Glacier Bancorp going out to 2021, and you can see them free on our platform here..
You can also see whether Glacier Bancorp 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.
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