WesBanco, Inc. (NASDAQ:WSBC) Just Released Its First-Quarter Earnings: Here's What Analysts Think

WesBanco, Inc. (NASDAQ:WSBC) last week reported its latest quarterly results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. The result was positive overall - although revenues of US$146m were in line with what the analysts predicted, WesBanco surprised by delivering a statutory profit of US$0.56 per share, modestly greater than expected. 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.

Check out our latest analysis for WesBanco

Taking into account the latest results, the most recent consensus for WesBanco from eight analysts is for revenues of US$602.2m in 2024. If met, it would imply a satisfactory 4.5% increase on its revenue over the past 12 months. Statutory earnings per share are forecast to decrease 6.2% to US$2.25 in the same period. In the lead-up to this report, the analysts had been modelling revenues of US$608.6m and earnings per share (EPS) of US$2.29 in 2024. 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.

There were no changes to revenue or earnings estimates or the price target of US$31.63, suggesting that the company has met expectations in its recent result. 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 WesBanco, with the most bullish analyst valuing it at US$35.00 and the most bearish at US$27.00 per share. This is a very narrow spread of estimates, implying either that WesBanco is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

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. The period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 6.1% growth on an annualised basis. That is in line with its 5.1% annual growth over the past five years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 6.0% per year. So although WesBanco is expected to maintain its revenue growth rate, it's only growing at about the rate of the wider 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$31.63, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on WesBanco. 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 WesBanco going out to 2025, and you can see them free on our platform here..

You can also see whether WesBanco is carrying too much debt, and whether its balance sheet is healthy, for free on our 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.