The Bank of New York Mellon Corporation (NYSE:BK) just released its latest quarterly results and things are looking bullish. Results were good overall, with revenues beating analyst predictions by 2.9% to hit US$4.5b. Statutory earnings per share (EPS) came in at US$1.25, some 5.3% above whatthe analysts had expected. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Bank of New York Mellon after the latest results.

Following the latest results, Bank of New York Mellon's twelve analysts are now forecasting revenues of US$18.0b in 2024. This would be a reasonable 2.7% improvement in revenue compared to the last 12 months. Per-share earnings are expected to leap 30% to US$5.37. Before this earnings report, the analysts had been forecasting revenues of US$17.8b and earnings per share (EPS) of US$5.28 in 2024. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at US$63.64. 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. There are some variant perceptions on Bank of New York Mellon, with the most bullish analyst valuing it at US$70.00 and the most bearish at US$58.00 per share. This is a very narrow spread of estimates, implying either that Bank of New York Mellon is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

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 Bank of New York Mellon's rate of growth is expected to accelerate meaningfully, with the forecast 3.6% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 1.5% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 7.3% annually. It seems obvious that, while the future growth outlook is brighter than the recent past, Bank of New York Mellon is expected to grow slower than the wider 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. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse 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.

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 forecasts for Bank of New York Mellon going out to 2026, and you can see them free on our platform here.

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.

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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.