Here's What Analysts Are Forecasting For Prosperity Bancshares, Inc. (NYSE:PB) After Its Annual Results
Prosperity Bancshares, Inc. (NYSE:PB) just released its latest annual report and things are not looking great. Results look to have been somewhat negative - revenue fell 2.2% short of analyst estimates at US$1.1b, and statutory earnings of US$4.51 per share missed forecasts by 3.3%. 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. 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 Prosperity Bancshares
Taking into account the latest results, the current consensus from Prosperity Bancshares' 16 analysts is for revenues of US$1.18b in 2024. This would reflect a modest 7.9% increase on its revenue over the past 12 months. Per-share earnings are expected to swell 12% to US$5.01. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$1.20b and earnings per share (EPS) of US$5.04 in 2024. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
It will come as no surprise then, to learn that the consensus price target is largely unchanged at US$72.69. 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. Currently, the most bullish analyst values Prosperity Bancshares at US$80.00 per share, while the most bearish prices it at US$57.00. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Prosperity Bancshares' past performance and to peers in the same industry. The period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 7.9% growth on an annualised basis. That is in line with its 8.4% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 5.6% per year. So it's pretty clear that Prosperity Bancshares is forecast to grow substantially faster than its industry.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at US$72.69, with the latest estimates not enough to have an impact on their price targets.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Prosperity Bancshares analysts - going out to 2026, and you can see them free on our platform here.
However, before you get too enthused, we've discovered 1 warning sign for Prosperity Bancshares 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.
