Pinnacle Financial Partners, Inc. (NASDAQ:PNFP) just released its quarterly report and things are looking bullish. Results were good overall, with revenues beating analyst predictions by 3.5% to hit US$278m. Earnings per share (EPS) came in at US$1.44, some 6.9% above what analysts had expected. Earnings are an important time for investors, as they can track a company’s performance, look at what top 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 analysts’ latest post-earnings forecasts for next year.
Taking into account the latest results, the latest consensus from Pinnacle Financial Partners’s ten analysts is for revenues of US$1.1b in 2020, which would reflect a solid 12% improvement in sales compared to the last 12 months. Earnings per share are expected to rise 2.7% to US$5.36. Yet prior to the latest earnings, analysts had been forecasting revenues of US$1.1b and earnings per share (EPS) of US$5.36 in 2020. So it’s pretty clear that, although analysts have updated their estimates, there’s been no major change in expectations for the business following the latest results.
There were no changes to revenue or earnings estimates or the price target of US$64.70, suggesting that the company has met expectations in its recent result. The consensus price target just an average of individual analyst targets, so – considering that the price target changed, it would be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Pinnacle Financial Partners, with the most bullish analyst valuing it at US$73.00 and the most bearish at US$61.00 per share. Still, with such a tight range of estimates, it suggests 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. It’s pretty clear that analysts expect Pinnacle Financial Partners’s revenue growth will slow down substantially, with revenues next year expected to grow 12%, compared to a historical growth rate of 31% over the past five years. By way of comparison, the 795 other companies in this market with analyst coverage, are forecast to grow their revenue at 2.6% next year. Even after the forecast slowdown in growth, it seems obvious that analysts are also expecting Pinnacle Financial Partners to grow faster than the wider market.
The Bottom Line
The most obvious conclusion from these results is that there’s been no major change in the business’ prospects in recent times, with analysts holding earnings per share steady, in line with previous estimates. Fortunately, analysts also reconfirmed their revenue estimates, suggesting sales are tracking in line with expectations – and our data does suggest that Pinnacle Financial Partners’s revenues are expected to grow faster than the wider market. The consensus price target held steady at US$64.70, with the latest estimates not enough to have an impact on analysts’ estimated valuations.
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 Pinnacle Financial Partners going out to 2021, and you can see them free on our platform here..
You can also view our analysis of Pinnacle Financial Partners’s balance sheet, and whether we think Pinnacle Financial Partners is carrying too much debt, for free on our platform here.
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