Emirates NBD Bank PJSC Just Recorded A 48% EPS Beat: Here's What Analysts Are Forecasting Next

As you might know, Emirates NBD Bank PJSC (DFM:EMIRATESNBD) recently reported its first-quarter numbers. Revenues were د.إ11b, approximately in line with whatthe analysts expected, although statutory earnings per share (EPS) crushed expectations, coming in at د.إ1.04, an impressive 48% ahead of estimates. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

See our latest analysis for Emirates NBD Bank PJSC

Following the latest results, Emirates NBD Bank PJSC's eleven analysts are now forecasting revenues of د.إ43.5b in 2024. This would be an okay 5.9% improvement in revenue compared to the last 12 months. Statutory earnings per share are forecast to dip 7.3% to د.إ3.18 in the same period. Before this earnings report, the analysts had been forecasting revenues of د.إ43.5b and earnings per share (EPS) of د.إ3.08 in 2024. So the consensus seems to have become somewhat more optimistic on Emirates NBD Bank PJSC's earnings potential following these results.

There's been no major changes to the consensus price target of د.إ22.35, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Emirates NBD Bank PJSC analyst has a price target of د.إ27.50 per share, while the most pessimistic values it at د.إ19.50. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's pretty clear that there is an expectation that Emirates NBD Bank PJSC's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 7.9% growth on an annualised basis. This is compared to a historical growth rate of 18% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 5.1% per year. Even after the forecast slowdown in growth, it seems obvious that Emirates NBD Bank PJSC is also expected to grow faster 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 Emirates NBD Bank PJSC following these results. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at د.إ22.35, with the latest estimates not enough to have an impact on their price targets.

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 Emirates NBD Bank PJSC going out to 2026, and you can see them free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with Emirates NBD Bank PJSC , and understanding it should be part of your investment process.

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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.