Here's What Analysts Are Forecasting For Peoples Bancorp Inc. (NASDAQ:PEBO) After Its First-Quarter Results

Peoples Bancorp Inc. (NASDAQ:PEBO) investors will be delighted, with the company turning in some strong numbers with its latest results. The company beat expectations with revenues of US$113m arriving 3.1% ahead of forecasts. Statutory earnings per share (EPS) were US$0.84, 5.0% ahead of estimates. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Check out our latest analysis for Peoples Bancorp

Taking into account the latest results, the current consensus from Peoples Bancorp's seven analysts is for revenues of US$444.7m in 2024. This would reflect a credible 4.0% increase on its revenue over the past 12 months. Per-share earnings are expected to rise 2.3% to US$3.39. Before this earnings report, the analysts had been forecasting revenues of US$440.3m and earnings per share (EPS) of US$3.33 in 2024. So the consensus seems to have become somewhat more optimistic on Peoples Bancorp's earnings potential following these results.

The consensus price target was unchanged at US$33.83, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. 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 Peoples Bancorp analyst has a price target of US$37.00 per share, while the most pessimistic values it at US$31.00. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Peoples Bancorp is an easy business to forecast or the the analysts are all using similar assumptions.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that Peoples Bancorp's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 5.4% growth on an annualised basis. This is compared to a historical growth rate of 20% over the past five years. Compare this to the 692 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 6.0% per year. So it's pretty clear that, while Peoples Bancorp's revenue growth is expected to slow, it's expected to grow roughly in line with the 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 Peoples Bancorp following these results. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate 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. At Simply Wall St, we have a full range of analyst estimates for Peoples Bancorp going out to 2025, 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 Peoples Bancorp 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.