Results: HomeTrust Bancshares, Inc. Exceeded Expectations And The Consensus Has Updated Its Estimates

HomeTrust Bancshares, Inc. (NASDAQ:HTBI) just released its latest quarterly results and things are looking bullish. The company beat both earnings and revenue forecasts, with revenue of US$44m, some 4.4% above estimates, and statutory earnings per share (EPS) coming in at US$0.90, 25% ahead of expectations. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on HomeTrust Bancshares after the latest results.

View our latest analysis for HomeTrust Bancshares

Taking into account the latest results, the consensus forecast from HomeTrust Bancshares' four analysts is for revenues of US$189.8m in 2023, which would reflect a sizeable 24% improvement in sales compared to the last 12 months. Per-share earnings are expected to soar 28% to US$3.01. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$186.3m and earnings per share (EPS) of US$2.56 in 2023. Although the revenue estimates have not really changed, we can see there's been a substantial gain in earnings per share expectations, suggesting that the analysts have become more bullish after the latest result.

The consensus price target was unchanged at US$28.70, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. 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. The most optimistic HomeTrust Bancshares analyst has a price target of US$33.00 per share, while the most pessimistic values it at US$25.50. This is a very narrow spread of estimates, implying either that HomeTrust Bancshares is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's clear from the latest estimates that HomeTrust Bancshares' rate of growth is expected to accelerate meaningfully, with the forecast 54% annualised revenue growth to the end of 2023 noticeably faster than its historical growth of 6.2% p.a. 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 6.5% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that HomeTrust Bancshares is expected to grow much faster than its industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards HomeTrust Bancshares following these results. 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 forecasts for HomeTrust Bancshares going out to 2025, and you can see them free on our platform here.

We also provide an overview of the HomeTrust Bancshares Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

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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.