Pathward Financial, Inc. Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year

As you might know, Pathward Financial, Inc. (NASDAQ:CASH) just kicked off its latest first-quarter results with some very strong numbers. It was overall a positive result, with revenues beating expectations by 2.2% to hit US$140m. Pathward Financial also reported a statutory profit of US$0.98, which was an impressive 22% above what the analysts had 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

View our latest analysis for Pathward Financial

Taking into account the latest results, the consensus forecast from Pathward Financial's three analysts is for revenues of US$659.8m in 2023, which would reflect a notable 19% improvement in sales compared to the last 12 months. Per-share earnings are expected to soar 35% to US$5.79. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$657.1m and earnings per share (EPS) of US$5.51 in 2023. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

There's been no major changes to the consensus price target of US$50.50, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. 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. The most optimistic Pathward Financial analyst has a price target of US$58.00 per share, while the most pessimistic values it at US$43.00. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that Pathward Financial's rate of growth is expected to accelerate meaningfully, with the forecast 26% annualised revenue growth to the end of 2023 noticeably faster than its historical growth of 15% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 6.5% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Pathward Financial to grow faster than 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 Pathward Financial's earnings potential next year. Fortunately, they also reconfirmed their revenue numbers, suggesting sales are tracking in line with expectations - and our data suggests that revenues are expected to grow faster than the wider industry. The consensus price target held steady at US$50.50, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Pathward Financial analysts - going out to 2024, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 1 warning sign for Pathward Financial that you should be aware of.

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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.