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United Community Banks, Inc. Beat Analyst Estimates: See What The Consensus Is Forecasting For Next Year

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  • UCBI
  • UCBIO

United Community Banks, Inc. (NASDAQ:UCBI) just released its latest quarterly results and things are looking bullish. It was overall a positive result, with revenues beating expectations by 5.7% to hit US$177m. United Community Banks also reported a statutory profit of US$0.52, which was an impressive 93% above what the analysts had forecast. This is an important time for investors, as they can track a company's performance in its report, look at what experts 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.

View our latest analysis for United Community Banks

earnings-and-revenue-growth
earnings-and-revenue-growth

Following the latest results, United Community Banks' seven analysts are now forecasting revenues of US$654.6m in 2021. This would be a substantial 22% improvement in sales compared to the last 12 months. Statutory per-share earnings are expected to be US$1.88, roughly flat on the last 12 months. Before this earnings report, the analysts had been forecasting revenues of US$645.6m and earnings per share (EPS) of US$1.73 in 2021. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

The consensus price target was unchanged at US$22.69, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on United Community Banks, with the most bullish analyst valuing it at US$24.00 and the most bearish at US$21.00 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 clear from the latest estimates that United Community Banks' rate of growth is expected to accelerate meaningfully, with the forecast 22% revenue growth noticeably faster than its historical growth of 11%p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 1.5% next year. Factoring in the forecast acceleration in revenue, it's pretty clear that United Community Banks is expected to grow much faster than its industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around United Community Banks' earnings potential next year. Happily, there were no major changes to revenue forecasts, with the business still 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 United Community Banks going out to 2022, and you can see them free on our platform here..

Don't forget that there may still be risks. For instance, we've identified 3 warning signs for United Community Banks that you should be aware of.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.