Shareholders might have noticed that Univest Financial Corporation (NASDAQ:UVSP) filed its second-quarter result this time last week. The early response was not positive, with shares down 4.0% to US$27.03 in the past week. Revenues were US$72m, approximately in line with whatthe analysts expected, although statutory earnings per share (EPS) crushed expectations, coming in at US$0.62, an impressive 22% ahead of 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 thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
Taking into account the latest results, the most recent consensus for Univest Financial from twin analysts is for revenues of US$295.0m in 2024. If met, it would imply a satisfactory 2.9% increase on its revenue over the past 12 months. Statutory earnings per share are expected to dip 2.9% to US$2.39 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$297.0m and earnings per share (EPS) of US$2.19 in 2024. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.
The consensus price target rose 15% to US$25.67, suggesting that higher earnings estimates flow through to the stock's valuation as well.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Univest Financial's past performance and to peers in the same industry. We would highlight that Univest Financial's revenue growth is expected to slow, with the forecast 5.9% annualised growth rate until the end of 2024 being well below the historical 7.4% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 6.3% annually. So it's pretty clear that, while Univest Financial's revenue growth is expected to slow, it's expected to grow roughly in line with the 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 Univest Financial following these results. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as 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 analyst estimates for Univest Financial going out as far as 2025, and you can see them free on our platform here.
It is also worth noting that we have found 1 warning sign for Univest Financial that you need to take into consideration.
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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.
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