Univest Financial Corporation Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next

Shareholders might have noticed that Univest Financial Corporation (NASDAQ:UVSP) filed its quarterly result this time last week. The early response was not positive, with shares down 4.0% to US$27.03 in the past week. Revenues were US$72m, approximately in line with whatthe analysts expected, although statutory earnings per share (EPS) crushed expectations, coming in at US$0.62, an impressive 22% ahead of estimates. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. 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 Univest Financial

Taking into account the latest results, the consensus forecast from Univest Financial's twin analysts is for revenues of US$295.0m in 2024. This reflects a credible 2.9% improvement in revenue compared to the last 12 months. Statutory earnings per share are expected to decrease 2.9% to US$2.39 in the same period. Before this earnings report, the analysts had been forecasting revenues of US$297.0m and earnings per share (EPS) of US$2.19 in 2024. So the consensus seems to have become somewhat more optimistic on Univest Financial's earnings potential following these results.

The consensus price target rose 15% to US$25.67, suggesting that higher earnings estimates flow through to the stock's valuation as well.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's pretty clear that there is an expectation that Univest Financial's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 5.9% growth on an annualised basis. This is compared to a historical growth rate of 7.4% over the past five years. Compare this to the 681 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 6.3% per year. So it's pretty clear that, while Univest Financial'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 Univest Financial following these results. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have analyst estimates for Univest Financial going out as far as 2025, and you can see them free on our platform here.

Even so, be aware that Univest Financial is showing 1 warning sign in our investment analysis , 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com