Analysts Are Updating Their Enterprise Financial Services Corp (NASDAQ:EFSC) Estimates After Its Full-Year Results

It's been a good week for Enterprise Financial Services Corp (NASDAQ:EFSC) shareholders, because the company has just released its latest full-year results, and the shares gained 6.0% to US$59.94. Results look mixed - while revenue fell marginally short of analyst estimates at US$607m, statutory earnings beat expectations 2.3%, with Enterprise Financial Services reporting profits of US$4.83 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Enterprise Financial Services after the latest results.

Check out our latest analysis for Enterprise Financial Services

Following the latest results, Enterprise Financial Services' four analysts are now forecasting revenues of US$658.9m in 2025. This would be a decent 8.5% improvement in revenue compared to the last 12 months. Statutory per share are forecast to be US$4.89, approximately in line with the last 12 months. Before this earnings report, the analysts had been forecasting revenues of US$634.6m and earnings per share (EPS) of US$4.55 in 2025. It looks like there's been a modest increase in sentiment following the latest results, withthe analysts becoming a bit more optimistic in their predictions for both revenues and earnings.

Althoughthe analysts have upgraded their earnings estimates, there was no change to the consensus price target of US$67.00, suggesting that the forecast performance does not have a long term impact on the company's 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 Enterprise Financial Services analyst has a price target of US$70.00 per share, while the most pessimistic values it at US$61.00. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Enterprise Financial Services' past performance and to peers in the same industry. We would highlight that Enterprise Financial Services' revenue growth is expected to slow, with the forecast 8.5% annualised growth rate until the end of 2025 being well below the historical 19% p.a. growth over the last five years. Compare this to the 680 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 7.3% per year. So it's pretty clear that, while Enterprise Financial Services' revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Enterprise Financial Services' earnings potential next year. There was also an upgrade to revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as 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 estimates - from multiple Enterprise Financial Services analysts - going out to 2026, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 1 warning sign for Enterprise Financial Services 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.