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Last week saw the newest yearly earnings release from Peapack-Gladstone Financial Corporation (NASDAQ:PGC), an important milestone in the company's journey to build a stronger business. Results look mixed - while revenue fell marginally short of analyst estimates at US$171m, statutory earnings were in line with expectations, at US$2.44 per share. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Taking into account the latest results, the latest consensus from Peapack-Gladstone Financial's four analysts is for revenues of US$194.3m in 2020, which would reflect a decent 14% improvement in sales compared to the last 12 months. Statutory earnings per share are expected to increase 6.4% to US$2.62. Yet prior to the latest earnings, analysts had been forecasting revenues of US$185.8m and earnings per share (EPS) of US$2.58 in 2020. So it looks like there's been no major change in sentiment following the latest results, although analysts have made a small lift in to revenue forecasts.
It may not be a surprise to see that analysts have reconfirmed their price target of US$32.80, implying that the uplift in sales is not expected to greatly contribute to Peapack-Gladstone Financial's valuation in the near term. The consensus price target just an average of individual analyst targets, so - considering that the price target changed, it would be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Peapack-Gladstone Financial at US$34.00 per share, while the most bearish prices it at US$29.50. Still, with such a tight range of estimates, it suggests analysts have a pretty good idea of what they think the company is worth.
Further, we can compare these estimates to past performance, and see how Peapack-Gladstone Financial forecasts compare to the wider market's forecast performance. Next year brings more of the same, according to analysts, with revenue forecast to grow 14%, in line with its 14% 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 4.9% per year. So although Peapack-Gladstone Financial is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider market.
The Bottom Line
The most obvious conclusion from these results is that there's been no major change in the business' prospects in recent times, with analysts holding earnings per share steady, in line with previous estimates. Fortunately, they also upgraded their revenue estimates, and are forecasting revenues to grow faster than the wider market. The consensus price target held steady at US$32.80, with the latest estimates not enough to have an impact on analysts' estimated valuations.
Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. We have forecasts for Peapack-Gladstone Financial going out to 2024, and you can see them free on our platform here.
It might also be worth considering whether Peapack-Gladstone Financial's debt load is appropriate, using our debt analysis tools on the Simply Wall St platform, here.
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