As you might know, The Bank of New York Mellon Corporation (NYSE:BK) just kicked off its latest quarterly results with some very strong numbers. The company beat expectations with revenues of US$4.5b arriving 2.9% ahead of forecasts. Statutory earnings per share (EPS) were US$1.25, 5.3% ahead of estimates. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Check out our latest analysis for Bank of New York Mellon

After the latest results, the twelve analysts covering Bank of New York Mellon are now predicting revenues of US$18.0b in 2024. If met, this would reflect an okay 2.7% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to shoot up 30% to US$5.39. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$17.8b and earnings per share (EPS) of US$5.28 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 was unchanged at US$63.64, 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. Currently, the most bullish analyst values Bank of New York Mellon at US$70.00 per share, while the most bearish prices it at US$58.00. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

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. 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 3.7% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 1.5% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 6.9% per year. 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 important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Bank of New York Mellon 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 Bank of New York Mellon's revenue is expected to perform worse than the wider industry. The consensus price target held steady at US$63.64, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. 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.