Analysts Are Updating Their Bank Handlowy w Warszawie S.A. (WSE:BHW) Estimates After Its Third-Quarter Results

Last week saw the newest quarterly earnings release from Bank Handlowy w Warszawie S.A. (WSE:BHW), an important milestone in the company's journey to build a stronger business. It was a credible result overall, with revenues of zł742m and statutory earnings per share of zł13.48 both in line with analyst estimates, showing that Bank Handlowy w Warszawie is executing in line with expectations. 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've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

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Following the recent earnings report, the consensus from five analysts covering Bank Handlowy w Warszawie is for revenues of zł3.42b in 2026. This implies an uneasy 17% decline in revenue compared to the last 12 months. Statutory per-share earnings are expected to be zł12.99, roughly flat on the last 12 months. Before this earnings report, the analysts had been forecasting revenues of zł3.72b and earnings per share (EPS) of zł12.38 in 2026. So it's pretty clear that while sentiment around revenues has declined following the latest results, the analysts are now more bullish on the company's earnings power.

See our latest analysis for Bank Handlowy w Warszawie

There's been no real change to the average price target of zł115, with the lower revenue and higher earnings forecasts not expected to meaningfully impact the company's valuation over a longer timeframe. 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. The most optimistic Bank Handlowy w Warszawie analyst has a price target of zł128 per share, while the most pessimistic values it at zł103. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

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. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 14% by the end of 2026. This indicates a significant reduction from annual growth of 16% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 2.0% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Bank Handlowy w Warszawie is expected to lag 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 Bank Handlowy w Warszawie's earnings potential next year. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. Even so, earnings are more important to the intrinsic value of the business. The consensus price target held steady at zł115, 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 estimates - from multiple Bank Handlowy w Warszawie analysts - going out to 2027, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 2 warning signs for Bank Handlowy w Warszawie you should be aware of, and 1 of them is a bit concerning.

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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.