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

Southside Bancshares, Inc. (NASDAQ:SBSI) last week reported its latest first-quarter results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. Revenues were US$64m, approximately in line with expectations, although statutory earnings per share (EPS) performed substantially better. EPS of US$0.77 were also better than expected, beating analyst predictions by 11%. 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.

Check out our latest analysis for Southside Bancshares

After the latest results, the five analysts covering Southside Bancshares are now predicting revenues of US$261.2m in 2022. If met, this would reflect a reasonable 6.6% improvement in sales compared to the last 12 months. Statutory earnings per share are expected to decrease 3.6% to US$3.11 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$258.0m and earnings per share (EPS) of US$2.91 in 2022. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

The consensus price target was unchanged at US$43.80, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Southside Bancshares analyst has a price target of US$45.00 per share, while the most pessimistic values it at US$42.00. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The period to the end of 2022 brings more of the same, according to the analysts, with revenue forecast to display 8.8% growth on an annualised basis. That is in line with its 8.1% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 7.8% annually. It's clear that while Southside Bancshares' revenue growth is expected to continue on its current trajectory, it's only expected to grow in line with the industry itself.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Southside Bancshares' earnings potential next year. 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 Southside Bancshares going out to 2023, and you can see them free on our platform here..

Before you take the next step you should know about the 2 warning signs for Southside Bancshares (1 is concerning!) 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.