Trustmark Corporation (NASDAQ:TRMK) Analysts Are Pretty Bullish On The Stock After Recent Results
It's been a good week for Trustmark Corporation (NASDAQ:TRMK) shareholders, because the company has just released its latest annual results, and the shares gained 5.0% to US$27.59. Revenues came in 2.7% below expectations, at US$749m. Statutory earnings per share were relatively better off, with a per-share profit of US$2.70 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 the 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 the analysts have changed their earnings models, following these results.
View our latest analysis for Trustmark
Taking into account the latest results, the most recent consensus for Trustmark from six analysts is for revenues of US$776.4m in 2024. If met, it would imply an okay 3.7% increase on its revenue over the past 12 months. Statutory earnings per share are forecast to drop 11% to US$2.42 in the same period. In the lead-up to this report, the analysts had been modelling revenues of US$761.7m and earnings per share (EPS) of US$2.22 in 2024. So the consensus seems to have become somewhat more optimistic on Trustmark's earnings potential following these results.
The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 5.8% to US$29.40. 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. The most optimistic Trustmark analyst has a price target of US$30.00 per share, while the most pessimistic values it at US$27.00. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 3.7% growth on an annualised basis. That is in line with its 4.5% annual growth over the past five years. Compare this with the broader industry (in aggregate), which analyst estimates suggest will see revenues grow 5.4% annually. So it's pretty clear that Trustmark is expected to grow slower than similar companies in the same industry.
The Bottom Line
The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Trustmark following these results. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Trustmark's revenue is expected to perform worse than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.
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 Trustmark analysts - going out to 2025, and you can see them free on our platform here.
You still need to take note of risks, for example - Trustmark has 1 warning sign we think 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.
