Peoples Bancorp Inc. (NASDAQ:PEBO) just released its latest first-quarter results and things are looking bullish. Results were good overall, with revenues beating analyst predictions by 3.1% to hit US$113m. Statutory earnings per share (EPS) came in at US$0.84, some 5.0% above whatthe analysts had expected. 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.
Taking into account the latest results, the current consensus from Peoples Bancorp's seven analysts is for revenues of US$444.7m in 2024. This would reflect a modest 4.0% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to increase 2.3% to US$3.39. In the lead-up to this report, the analysts had been modelling revenues of US$440.3m and earnings per share (EPS) of US$3.33 in 2024. So the consensus seems to have become somewhat more optimistic on Peoples Bancorp's earnings potential following these results.
The consensus price target was unchanged at US$33.83, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Peoples Bancorp analyst has a price target of US$37.00 per share, while the most pessimistic values it at US$31.00. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that Peoples Bancorp's revenue growth is expected to slow, with the forecast 5.4% annualised growth rate until the end of 2024 being well below the historical 20% p.a. growth over the last five years. Compare this to the 692 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 6.0% per year. So it's pretty clear that, while Peoples Bancorp's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Peoples Bancorp's earnings potential next year. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target held steady at US$33.83, with the latest estimates not enough to have an impact on their price targets.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Peoples Bancorp going out to 2025, and you can see them free on our platform here.
Don't forget that there may still be risks. For instance, we've identified 1 warning sign for Peoples Bancorp that 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.