Analysts Have Made A Financial Statement On Northwest Bancshares, Inc.'s (NASDAQ:NWBI) Third-Quarter Report

Northwest Bancshares, Inc. (NASDAQ:NWBI) came out with its third-quarter results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. Results were roughly in line with estimates, with revenues of US$139m and statutory earnings per share of US$0.26. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

See our latest analysis for Northwest Bancshares

Taking into account the latest results, the consensus forecast from Northwest Bancshares' five analysts is for revenues of US$581.6m in 2025. This reflects a solid 19% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to shoot up 36% to US$1.02. Before this earnings report, the analysts had been forecasting revenues of US$578.8m and earnings per share (EPS) of US$1.02 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

There were no changes to revenue or earnings estimates or the price target of US$13.30, 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. There are some variant perceptions on Northwest Bancshares, with the most bullish analyst valuing it at US$15.00 and the most bearish at US$12.00 per share. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Northwest Bancshares' growth to accelerate, with the forecast 15% annualised growth to the end of 2025 ranking favourably alongside historical growth of 4.0% per annum 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. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Northwest Bancshares to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at US$13.30, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Northwest Bancshares. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Northwest Bancshares going out to 2026, and you can see them free on our platform here..

Before you take the next step you should know about the 1 warning sign for Northwest Bancshares that we have uncovered.

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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.