Results: Washington Trust Bancorp, Inc. Beat Earnings Expectations And Analysts Now Have New Forecasts

Washington Trust Bancorp, Inc. (NASDAQ:WASH) defied analyst predictions to release its first-quarter results, which were ahead of market expectations. It was overall a positive result, with revenues beating expectations by 6.0% to hit US$49m. Washington Trust Bancorp also reported a statutory profit of US$0.64, which was an impressive 41% above what the analysts had forecast. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for Washington Trust Bancorp

Following last week's earnings report, Washington Trust Bancorp's four analysts are forecasting 2024 revenues to be US$191.0m, approximately in line with the last 12 months. Statutory earnings per share are forecast to descend 19% to US$2.19 in the same period. In the lead-up to this report, the analysts had been modelling revenues of US$190.4m and earnings per share (EPS) of US$2.06 in 2024. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

The consensus price target fell 5.8% to US$27.00, suggesting the increase in earnings forecasts was not enough to offset other the analysts concerns. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Washington Trust Bancorp analyst has a price target of US$28.00 per share, while the most pessimistic values it at US$26.00. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Washington Trust Bancorp's growth to accelerate, with the forecast 1.8% annualised growth to the end of 2024 ranking favourably alongside historical growth of 0.8% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 5.9% per year. So it's clear that despite the acceleration in growth, Washington Trust Bancorp is expected to grow meaningfully slower than the industry average.

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 Washington Trust 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 Washington Trust Bancorp's revenue is expected to perform worse than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Washington Trust Bancorp's future valuation.

With that in mind, we wouldn't be too quick to come to a conclusion on Washington Trust Bancorp. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Washington Trust Bancorp going out to 2025, and you can see them free on our platform here..

We don't want to rain on the parade too much, but we did also find 1 warning sign for Washington Trust Bancorp that you need to be mindful 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.