ING Bank Slaski S.A. Just Missed Earnings And Its Revenue Numbers Were Weaker Than Expected

Last week, you might have seen that ING Bank Slaski S.A. (WSE:ING) released its full-year result to the market. The early response was not positive, with shares down 2.7% to zł182 in the past week. Revenues were zł5.2b, 16% below analyst expectations, although losses didn't appear to worsen significantly, with a per-share statutory loss of zł10.28 being in line with what the analysts forecast. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Check out our latest analysis for ING Bank Slaski

Taking into account the latest results, the consensus forecast from ING Bank Slaski's four analysts is for revenues of zł6.51b in 2021, which would reflect a substantial 26% improvement in sales compared to the last 12 months. Statutory earnings per share are expected to descend 12% to zł9.97 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of zł6.20b and earnings per share (EPS) of zł9.84 in 2021. So it looks like there's been no major change in sentiment following the latest results, although the analysts have made a modest lift to to revenue forecasts.

It may not be a surprise to see thatthe analysts have reconfirmed their price target of zł175, implying that the uplift in sales is not expected to greatly contribute to ING Bank Slaski's valuation in the near term. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values ING Bank Slaski at zł221 per share, while the most bearish prices it at zł143. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

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. The analysts are definitely expecting ING Bank Slaski's growth to accelerate, with the forecast 26% growth ranking favourably alongside historical growth of 8.1% per annum 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 6.9% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect ING Bank Slaski to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, they also upgraded their revenue estimates, and are forecasting revenues 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.

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 ING Bank Slaski going out to 2023, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 1 warning sign for ING Bank Slaski you should be aware of.

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This article by Simply Wall St is general in nature. 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.
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