As you might know, Peapack-Gladstone Financial Corporation (NASDAQ:PGC) just kicked off its latest third-quarter results with some very strong numbers. Peapack-Gladstone Financial beat earnings, with revenues hitting US$52m, ahead of expectations, and statutory earnings per share outperforming analyst reckonings by a solid 11%. The 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
After the latest results, the four analysts covering Peapack-Gladstone Financial are now predicting revenues of US$192.9m in 2021. If met, this would reflect a substantial 22% improvement in sales compared to the last 12 months. Statutory earnings per share are expected to decrease 2.4% to US$1.83 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$192.4m and earnings per share (EPS) of US$1.86 in 2021. 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.
There were no changes to revenue or earnings estimates or the price target of US$22.88, suggesting that the company has met expectations in its recent result. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Peapack-Gladstone Financial at US$24.00 per share, while the most bearish prices it at US$20.00. This is a very narrow spread of estimates, implying either that Peapack-Gladstone Financial is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's clear from the latest estimates that Peapack-Gladstone Financial's rate of growth is expected to accelerate meaningfully, with the forecast 22% revenue growth noticeably faster than its historical growth of 10%p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 1.3% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Peapack-Gladstone Financial is expected to grow much faster than its industry.
The Bottom Line
The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, they also reconfirmed their revenue numbers, suggesting sales are tracking in line with expectations - and our data suggests that revenues are expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
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 Peapack-Gladstone Financial going out to 2024, and you can see them free on our platform here..
We also provide an overview of the Peapack-Gladstone Financial Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.
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. 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.
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