S&T Bancorp, Inc. (NASDAQ:STBA) Just Reported Annual Earnings: Have Analysts Changed Their Mind On The Stock?

It's been a good week for S&T Bancorp, Inc. (NASDAQ:STBA) shareholders, because the company has just released its latest full-year results, and the shares gained 5.5% to US$39.44. S&T Bancorp reported US$384m in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of US$3.41 beat expectations, being 2.6% 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.

See our latest analysis for S&T Bancorp

Taking into account the latest results, the most recent consensus for S&T Bancorp from five analysts is for revenues of US$396.8m in 2025. If met, it would imply a reasonable 3.4% increase on its revenue over the past 12 months. Statutory earnings per share are expected to reduce 9.9% to US$3.09 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$393.9m and earnings per share (EPS) of US$3.03 in 2025. So the consensus seems to have become somewhat more optimistic on S&T Bancorp's earnings potential following these results.

There's been no major changes to the consensus price target of US$42.25, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on S&T Bancorp, with the most bullish analyst valuing it at US$44.00 and the most bearish at US$40.00 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 3.4% annualised growth rate until the end of 2025 being well below the historical 11% 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 7.5% 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 biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around S&T Bancorp's earnings potential next year. 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. 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.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple S&T Bancorp analysts - going out to 2026, and you can see them free on our platform here.

You still need to take note of risks, for example - S&T Bancorp has 2 warning signs (and 1 which is concerning) we think you should know about.

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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.