ABN AMRO Bank N.V. Just Recorded A 30% EPS Beat: Here's What Analysts Are Forecasting Next

ABN AMRO Bank N.V. (AMS:ABN) 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 3.1% to hit €2.3b. ABN AMRO Bank also reported a statutory profit of €0.78, which was an impressive 30% above what the analysts had 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on ABN AMRO Bank after the latest results.

View our latest analysis for ABN AMRO Bank

Following last week's earnings report, ABN AMRO Bank's 14 analysts are forecasting 2025 revenues to be €8.79b, approximately in line with the last 12 months. Statutory earnings per share are expected to drop 20% to €2.37 in the same period. Before this earnings report, the analysts had been forecasting revenues of €8.80b and earnings per share (EPS) of €2.35 in 2025. 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 €17.67. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic ABN AMRO Bank analyst has a price target of €23.00 per share, while the most pessimistic values it at €14.30. 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.

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. It's pretty clear that there is an expectation that ABN AMRO Bank's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 0.2% growth on an annualised basis. This is compared to a historical growth rate of 6.1% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 3.0% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than ABN AMRO Bank.

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. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that ABN AMRO Bank's revenue is expected to perform worse than the wider industry. The consensus price target held steady at €17.67, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple ABN AMRO Bank analysts - going out to 2026, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 2 warning signs for ABN AMRO Bank (1 shouldn't be ignored!) that you should be aware of.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.