The German American Bancorp, Inc. (NASDAQ:GABC) Third-Quarter Results Are Out And Analysts Have Published New Forecasts

It's been a good week for German American Bancorp, Inc. (NASDAQ:GABC) shareholders, because the company has just released its latest third-quarter results, and the shares gained 3.3% to US$41.27. Results were roughly in line with estimates, with revenues of US$64m and statutory earnings per share of US$0.71. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for German American Bancorp

Taking into account the latest results, the current consensus from German American Bancorp's six analysts is for revenues of US$343.6m in 2025. This would reflect a major 39% increase on its revenue over the past 12 months. Statutory per-share earnings are expected to be US$2.82, roughly flat on the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$343.1m and earnings per share (EPS) of US$2.79 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

There were no changes to revenue or earnings estimates or the price target of US$44.67, suggesting that the company has met expectations in its recent result. 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. Currently, the most bullish analyst values German American Bancorp at US$48.00 per share, while the most bearish prices it at US$42.00. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting German American Bancorp is an easy business to forecast or the the analysts are all using similar assumptions.

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. It's clear from the latest estimates that German American Bancorp's rate of growth is expected to accelerate meaningfully, with the forecast 30% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 7.5% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 6.7% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect German American Bancorp to grow faster than the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. 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.

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 German American Bancorp going out to 2026, and you can see them free on our platform here.

You can also view our analysis of German American Bancorp's balance sheet, and whether we think German American Bancorp is carrying too much debt, for free on our platform here.

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.