S&T Bancorp, Inc. Just Recorded A 6.0% EPS Beat: Here's What Analysts Are Forecasting Next

Investors in S&T Bancorp, Inc. (NASDAQ:STBA) had a good week, as its shares rose 3.1% to close at US$36.78 following the release of its third-quarter results. S&T Bancorp reported US$104m in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of US$0.91 beat expectations, being 6.0% higher than what the analysts expected. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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Taking into account the latest results, the consensus forecast from S&T Bancorp's six analysts is for revenues of US$423.8m in 2026. This reflects a solid 8.1% improvement in revenue compared to the last 12 months. Statutory per-share earnings are expected to be US$3.50, roughly flat on the last 12 months. Before this earnings report, the analysts had been forecasting revenues of US$421.7m and earnings per share (EPS) of US$3.40 in 2026. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

See our latest analysis for S&T Bancorp

There's been no major changes to the consensus price target of US$40.40, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on S&T Bancorp, with the most bullish analyst valuing it at US$42.00 and the most bearish at US$39.00 per share. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting S&T Bancorp is an easy business to forecast or the the analysts are all using similar assumptions.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the S&T Bancorp's past performance and to peers in the same industry. We would highlight that S&T Bancorp's revenue growth is expected to slow, with the forecast 6.5% annualised growth rate until the end of 2026 being well below the historical 9.8% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 8.1% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than S&T Bancorp.

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 S&T Bancorp following these results. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that S&T Bancorp's revenue is expected to perform worse than the wider industry. The consensus price target held steady at US$40.40, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for S&T Bancorp going out to 2027, and you can see them free on our platform here.

It might also be worth considering whether S&T Bancorp's debt load is appropriate, using our debt analysis tools on the Simply Wall St platform, 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.