Results: Standard Chartered PLC Exceeded Expectations And The Consensus Has Updated Its Estimates

Standard Chartered PLC (LON:STAN) investors will be delighted, with the company turning in some strong numbers with its latest results. It was overall a positive result, with revenues beating expectations by 6.4% to hit US$5.2b. Standard Chartered also reported a statutory profit of US$0.45, which was an impressive 38% above what the analysts had forecast. 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.

View our latest analysis for Standard Chartered

Taking into account the latest results, the consensus forecast from Standard Chartered's 17 analysts is for revenues of US$18.9b in 2024. This reflects a notable 11% improvement in revenue compared to the last 12 months. Per-share earnings are expected to bounce 20% to US$1.45. Before this earnings report, the analysts had been forecasting revenues of US$18.5b and earnings per share (EPS) of US$1.38 in 2024. So the consensus seems to have become somewhat more optimistic on Standard Chartered's earnings potential following these results.

The consensus price target was unchanged at UK£9.04, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Standard Chartered at UK£12.94 per share, while the most bearish prices it at UK£6.92. 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.

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 Standard Chartered's rate of growth is expected to accelerate meaningfully, with the forecast 14% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 3.9% 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 3.9% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Standard Chartered 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 Standard Chartered's earnings potential next year. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is 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 in mind, we wouldn't be too quick to come to a conclusion on Standard Chartered. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Standard Chartered going out to 2026, and you can see them free on our platform here..

We don't want to rain on the parade too much, but we did also find 2 warning signs for Standard Chartered that you need to be mindful 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.