Bank Polska Kasa Opieki S.A. (WSE:PEO) Just Reported Half-Yearly Earnings: Have Analysts Changed Their Mind On The Stock?

Bank Polska Kasa Opieki S.A. (WSE:PEO) shareholders are probably feeling a little disappointed, since its shares fell 4.3% to zł145 in the week after its latest half-yearly results. Results look mixed - while revenue fell marginally short of analyst estimates at zł7.7b, statutory earnings were in line with expectations, at zł25.06 per share. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

View our latest analysis for Bank Polska Kasa Opieki

Following the latest results, Bank Polska Kasa Opieki's eleven analysts are now forecasting revenues of zł15.3b in 2024. This would be a credible 4.2% improvement in revenue compared to the last 12 months. Statutory earnings per share are forecast to shrink 5.3% to zł23.00 in the same period. In the lead-up to this report, the analysts had been modelling revenues of zł15.3b and earnings per share (EPS) of zł24.03 in 2024. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.

It might be a surprise to learn that the consensus price target was broadly unchanged at zł192, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. 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. The most optimistic Bank Polska Kasa Opieki analyst has a price target of zł228 per share, while the most pessimistic values it at zł161. 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.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that Bank Polska Kasa Opieki's revenue growth is expected to slow, with the forecast 8.5% annualised growth rate until the end of 2024 being well below the historical 17% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 4.1% annually. Even after the forecast slowdown in growth, it seems obvious that Bank Polska Kasa Opieki is also expected to grow faster than the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Bank Polska Kasa Opieki. Happily, there were no major changes to revenue forecasts, with the business still expected 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.

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 Bank Polska Kasa Opieki analysts - going out to 2026, 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 Polska Kasa Opieki you should be aware of, and 1 of them is 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.