Banco Santander-Chile Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions

Investors in Banco Santander-Chile (SNSE:BSANTANDER) had a good week, as its shares rose 3.5% to close at CL$38.49 following the release of its annual results. Revenues missed analyst forecasts badly, coming in 28% below estimates at CL$1.5t. Equally surprising was the fact that statutory earnings per share of CL$2.75 beat analyst estimates by 11%. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

View our latest analysis for Banco Santander-Chile

Taking into account the latest results, the most recent consensus for Banco Santander-Chile from eleven analysts is for revenues of CL$2.14t in 2021 which, if met, would be a substantial 47% increase on its sales over the past 12 months. Statutory earnings per share are predicted to step up 17% to CL$2.80. In the lead-up to this report, the analysts had been modelling revenues of CL$2.13t and earnings per share (EPS) of CL$2.77 in 2021. 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.

There were no changes to revenue or earnings estimates or the price target of CL$43.11, suggesting that the company has met expectations in its recent result. 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 Banco Santander-Chile, with the most bullish analyst valuing it at CL$50.00 and the most bearish at CL$33.00 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

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. The analysts are definitely expecting Banco Santander-Chile's growth to accelerate, with the forecast 47% growth ranking favourably alongside historical growth of 3.7% 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 15% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Banco Santander-Chile is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, they also reconfirmed their revenue numbers, suggesting sales are tracking in line with expectations - and our data suggests that revenues are expected to grow faster 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.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Banco Santander-Chile going out to 2022, and you can see them free on our platform here.

Plus, you should also learn about the 1 warning sign we've spotted with Banco Santander-Chile .

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