Analysts Are Updating Their Zions Bancorporation, National Association (NASDAQ:ZION) Estimates After Its Yearly Results

Investors in Zions Bancorporation, National Association (NASDAQ:ZION) had a good week, as its shares rose 7.3% to close at US$51.77 following the release of its annual results. Zions Bancorporation National Association missed revenue estimates by 4.0%, with sales of US$3.0b, although statutory earnings per share (EPS) of US$5.79 beat expectations, coming in 3.2% ahead of analyst estimates. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

View our latest analysis for Zions Bancorporation National Association

Taking into account the latest results, the most recent consensus for Zions Bancorporation National Association from 17 analysts is for revenues of US$3.46b in 2023 which, if met, would be a meaningful 14% increase on its sales over the past 12 months. Statutory earnings per share are predicted to accumulate 9.7% to US$6.48. In the lead-up to this report, the analysts had been modelling revenues of US$3.56b and earnings per share (EPS) of US$6.64 in 2023. The analysts are less bullish than they were before these results, given the reduced revenue forecasts and the minor downgrade to earnings per share expectations.

The analysts made no major changes to their price target of US$58.11, suggesting the downgrades are not expected to have a long-term impact on Zions Bancorporation National Association's valuation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Zions Bancorporation National Association, with the most bullish analyst valuing it at US$66.00 and the most bearish at US$49.00 per share. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that Zions Bancorporation National Association's rate of growth is expected to accelerate meaningfully, with the forecast 14% annualised revenue growth to the end of 2023 noticeably faster than its historical growth of 2.7% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 6.4% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Zions Bancorporation National Association is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. They also downgraded their revenue estimates, although industry data suggests that Zions Bancorporation National Association's revenues are expected to grow faster than the wider industry. The consensus price target held steady at US$58.11, 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 Zions Bancorporation National Association. 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 Zions Bancorporation National Association going out to 2025, and you can see them free on our platform here..

And what about risks? Every company has them, and we've spotted 1 warning sign for Zions Bancorporation National Association 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.