ABN AMRO Bank N.V. Just Recorded A 13% EPS Beat: Here's What Analysts Are Forecasting Next

ABN AMRO Bank N.V. (AMS:ABN) defied analyst predictions to release its quarterly results, which were ahead of market expectations. It was overall a positive result, with revenues beating expectations by 4.1% to hit €1.9b. ABN AMRO Bank reported statutory earnings per share (EPS) €0.29, which was a notable 13% above what the analysts had forecast. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

View our latest analysis for ABN AMRO Bank

Following the recent earnings report, the consensus from 16 analysts covering ABN AMRO Bank is for revenues of €7.26b in 2022, implying a measurable 4.4% decline in sales compared to the last 12 months. Statutory earnings per share are forecast to crater 28% to €1.16 in the same period. Before this earnings report, the analysts had been forecasting revenues of €7.21b and earnings per share (EPS) of €1.14 in 2022. 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.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at €13.65. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on ABN AMRO Bank, with the most bullish analyst valuing it at €19.20 and the most bearish at €10.00 per share. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the ABN AMRO Bank's past performance and to peers in the same industry. We would also point out that the forecast 5.8% annualised revenue decline to the end of 2022 is better than the historical trend, which saw revenues shrink 7.3% annually over the past five years By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 4.8% per year. So it's pretty clear that, while it does have declining revenues, the analysts also expect ABN AMRO Bank to suffer worse than 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. On the plus side, there were no major changes to revenue estimates; although forecasts imply revenues will perform worse than the wider industry. The consensus price target held steady at €13.65, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on ABN AMRO Bank. 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 ABN AMRO Bank going out to 2024, and you can see them free on our platform here..

Before you take the next step you should know about the 2 warning signs for ABN AMRO Bank that we have uncovered.

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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.