Standard Chartered PLC Just Recorded A 24% EPS Beat: Here's What Analysts Are Forecasting Next

Investors in Standard Chartered PLC (LON:STAN) had a good week, as its shares rose 9.4% to close at UK£15.60 following the release of its third-quarter results. It looks like a credible result overall - although revenues of US$5.1b were what the analysts expected, Standard Chartered surprised by delivering a (statutory) profit of US$0.43 per share, an impressive 24% above what was forecast. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Taking into account the latest results, the current consensus from Standard Chartered's 17 analysts is for revenues of US$21.4b in 2026. This would reflect a modest 6.2% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to rise 2.3% to US$2.07. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$21.3b and earnings per share (EPS) of US$2.06 in 2026. 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.

Check out our latest analysis for Standard Chartered

The analysts reconfirmed their price target of UK£15.47, showing that the business is executing well and in line with expectations. 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 Standard Chartered, with the most bullish analyst valuing it at UK£17.27 and the most bearish at UK£12.48 per share. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Standard Chartered's past performance and to peers in the same industry. It's pretty clear that there is an expectation that Standard Chartered's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 5.0% growth on an annualised basis. This is compared to a historical growth rate of 9.4% over the past five years. Compare this to the 13 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 5.7% per year. Factoring in the forecast slowdown in growth, it looks like Standard Chartered is forecast to grow at about the same rate as the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at UK£15.47, 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 Standard Chartered going out to 2027, and you can see them free on our platform here.

Plus, you should also learn about the 1 warning sign we've spotted with Standard Chartered .

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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.