S&T Bancorp, Inc. (NASDAQ:STBA) Just Released Its Second-Quarter Earnings: Here's What Analysts Think

Last week, you might have seen that S&T Bancorp, Inc. (NASDAQ:STBA) released its second-quarter result to the market. The early response was not positive, with shares down 3.7% to US$37.67 in the past week. S&T Bancorp reported US$101m in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of US$0.83 beat expectations, being 3.0% 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've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

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After the latest results, the seven analysts covering S&T Bancorp are now predicting revenues of US$401.2m in 2025. If met, this would reflect a modest 3.3% improvement in revenue compared to the last 12 months. Statutory earnings per share are expected to shrink 3.8% to US$3.29 in the same period. In the lead-up to this report, the analysts had been modelling revenues of US$398.6m and earnings per share (EPS) of US$3.29 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.

See our latest analysis for S&T Bancorp

The analysts reconfirmed their price target of US$41.17, showing that the business is executing well and in line with expectations. 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. The most optimistic S&T Bancorp analyst has a price target of US$43.00 per share, while the most pessimistic values it at US$40.00. This is a very narrow spread of estimates, implying either that S&T Bancorp is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that S&T Bancorp's revenue growth is expected to slow, with the forecast 6.6% annualised growth rate until the end of 2025 being well below the historical 11% p.a. growth over the last five years. Compare this to the 659 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 7.5% per year. So it's pretty clear that, while S&T 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 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. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target held steady at US$41.17, with the latest estimates not enough to have an impact on their price targets.

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. We have forecasts for S&T Bancorp going out to 2026, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 1 warning sign for S&T Bancorp 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.