Westpac Banking Corporation Just Recorded A 6.3% EPS Beat: Here's What Analysts Are Forecasting Next

As you might know, Westpac Banking Corporation (ASX:WBC) recently reported its full-year numbers. Westpac Banking missed revenue estimates by 2.6%, coming in atAU$21b, although statutory earnings per share (EPS) of AU$2.01 beat expectations, coming in 6.3% ahead of analyst 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Westpac Banking after the latest results.

See our latest analysis for Westpac Banking

Taking into account the latest results, the current consensus from Westpac Banking's twelve analysts is for revenues of AU$22.4b in 2025. This would reflect an okay 6.3% increase on its revenue over the past 12 months. Statutory earnings per share are expected to shrink 3.0% to AU$1.97 in the same period. In the lead-up to this report, the analysts had been modelling revenues of AU$22.3b and earnings per share (EPS) of AU$1.87 in 2025. 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 AU$27.51, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. 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. Currently, the most bullish analyst values Westpac Banking at AU$33.00 per share, while the most bearish prices it at AU$20.00. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Westpac Banking shareholders.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Westpac Banking's growth to accelerate, with the forecast 6.3% annualised growth to the end of 2025 ranking favourably alongside historical growth of 2.3% per annum 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 4.4% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Westpac Banking to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Westpac Banking's earnings potential next year. 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 AU$27.51, 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 estimates - from multiple Westpac Banking analysts - going out to 2027, and you can see them free on our platform here.

You still need to take note of risks, for example - Westpac Banking has 1 warning sign we think you should be aware of.

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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.