Banc of California, Inc. Just Beat EPS By 14%: Here's What Analysts Think Will Happen Next

Last week saw the newest quarterly earnings release from Banc of California, Inc. (NYSE:BANC), an important milestone in the company's journey to build a stronger business. Revenues were US$288m, approximately in line with expectations, although statutory earnings per share (EPS) performed substantially better. EPS of US$0.38 were also better than expected, beating analyst predictions by 14%. 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.

AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early.

Taking into account the latest results, the consensus forecast from Banc of California's eight analysts is for revenues of US$1.22b in 2026. This reflects a solid 20% improvement in revenue compared to the last 12 months. Per-share earnings are expected to surge 58% to US$1.72. In the lead-up to this report, the analysts had been modelling revenues of US$1.23b and earnings per share (EPS) of US$1.72 in 2026. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

See our latest analysis for Banc of California

The analysts reconfirmed their price target of US$20.23, showing that the business is executing well and in line with expectations. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Banc of California, with the most bullish analyst valuing it at US$21.50 and the most bearish at US$17.00 per share. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Banc of California 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 Banc of California's past performance and to peers in the same industry. One thing stands out from these estimates, which is that Banc of California is forecast to grow faster in the future than it has in the past, with revenues expected to display 16% annualised growth until the end of 2026. If achieved, this would be a much better result than the 11% annual decline over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 8.2% annually. Not only are Banc of California's revenues expected to improve, it seems that the analysts are also expecting it to grow faster than 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. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at US$20.23, with the latest estimates not enough to have an impact on their price targets.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Banc of California analysts - going out to 2027, and you can see them free on our platform here.

You still need to take note of risks, for example - Banc of California has 1 warning sign we think you should be aware of.

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

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.