Last week, you might have seen that Pinnacle Financial Partners, Inc. (NASDAQ:PNFP) released its full-year result to the market. The early response was not positive, with shares down 2.9% to US$61.63 in the past week. Revenues came in 4.7% below expectations, at US$1.0b. Statutory earnings per share were relatively better off, with a per-share profit of US$5.22 being roughly in line with analyst estimates. Earnings are an important time for investors, as they can track a company's performance, look at what top 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 analysts have changed their earnings models, following these results.
Taking into account the latest results, the latest consensus from Pinnacle Financial Partners's nine analysts is for revenues of US$1.12b in 2020, which would reflect a notable 11% improvement in sales compared to the last 12 months. Statutory per share are forecast to be US$5.32, approximately in line with the last 12 months. In the lead-up to this report, analysts had been modelling revenues of US$1.12b and earnings per share (EPS) of US$5.36 in 2020. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
Analysts reconfirmed their price target of US$68.78, showing that the business is executing well and in line with expectations. 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. There are some variant perceptions on Pinnacle Financial Partners, with the most bullish analyst valuing it at US$74.00 and the most bearish at US$65.00 per share. 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. It's pretty clear that analysts expect Pinnacle Financial Partners's revenue growth will slow down substantially, with revenues next year expected to grow 11%, compared to a historical growth rate of 30% over the past five years. By way of comparison, other companies in this market with analyst coverage, are forecast to grow their revenue at 4.9% next year. So it's pretty clear that, while Pinnacle Financial Partners's revenue growth is expected to slow, it's still expected to grow faster than the market itself.
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, analysts also reconfirmed their revenue estimates, suggesting sales are tracking in line with expectations - and our data does suggest that Pinnacle Financial Partners's revenues are expected to grow faster than the wider market. The consensus price target held steady at US$68.78, 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 Pinnacle Financial Partners going out to 2021, and you can see them free on our platform here..
You can also see whether Pinnacle Financial Partners is carrying too much debt, and whether its balance sheet is healthy, for free on our platform here.
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