Peoples Bancorp Inc. (NASDAQ:PEBO) Just Reported Full-Year Earnings: Have Analysts Changed Their Mind On The Stock?
Peoples Bancorp Inc. (NASDAQ:PEBO) shareholders are probably feeling a little disappointed, since its shares fell 2.9% to US$30.22 in the week after its latest yearly results. Revenues came in 4.4% below expectations, at US$412m. Statutory earnings per share were relatively better off, with a per-share profit of US$3.44 being roughly in line with analyst estimates. 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.
Check out our latest analysis for Peoples Bancorp
Taking into account the latest results, the current consensus from Peoples Bancorp's six analysts is for revenues of US$443.1m in 2024. This would reflect an okay 7.7% increase on its revenue over the past 12 months. Per-share earnings are expected to rise 4.1% to US$3.37. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$462.6m and earnings per share (EPS) of US$3.71 in 2024. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a small dip in earnings per share estimates.
The analysts made no major changes to their price target of US$35.40, suggesting the downgrades are not expected to have a long-term impact on Peoples Bancorp'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. There are some variant perceptions on Peoples Bancorp, with the most bullish analyst valuing it at US$38.00 and the most bearish at US$34.00 per share. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.
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 Peoples Bancorp's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 7.7% growth on an annualised basis. This is compared to a historical growth rate of 18% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 5.5% per year. Even after the forecast slowdown in growth, it seems obvious that Peoples Bancorp is also expected to grow faster than the wider industry.
The Bottom Line
The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. They also downgraded Peoples Bancorp's revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. The consensus price target held steady at US$35.40, with the latest estimates not enough to have an impact on their price targets.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Peoples Bancorp analysts - going out to 2025, and you can see them free on our platform here.
It is also worth noting that we have found 1 warning sign for Peoples Bancorp that you need to take into consideration.
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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.
