Results: Cadence Bank Beat Earnings Expectations And Analysts Now Have New Forecasts

Last week saw the newest first-quarter earnings release from Cadence Bank (NYSE:CADE), an important milestone in the company's journey to build a stronger business. Cadence Bank reported US$449m in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of US$0.70 beat expectations, being 9.2% higher than what the analysts expected. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Cadence Bank after the latest results.

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Taking into account the latest results, the current consensus from Cadence Bank's ten analysts is for revenues of US$1.88b in 2025. This would reflect a meaningful 8.6% increase on its revenue over the past 12 months. Statutory earnings per share are forecast to shrink 2.1% to US$2.82 in the same period. In the lead-up to this report, the analysts had been modelling revenues of US$1.89b and earnings per share (EPS) of US$2.81 in 2025. 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.

See our latest analysis for Cadence Bank

The consensus price target fell 8.6% to US$35.00, suggesting that the analysts might have been a bit enthusiastic in their previous valuation - or they were expecting the company to provide stronger guidance in the quarterly results. 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 Cadence Bank, with the most bullish analyst valuing it at US$38.00 and the most bearish at US$31.00 per share. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 12% growth on an annualised basis. That is in line with its 11% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 7.1% annually. So although Cadence Bank is expected to maintain its revenue growth rate, it's definitely expected 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. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster 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 Cadence Bank's future valuation.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Cadence Bank going out to 2027, and you can see them free on our platform here.

You can also see our analysis of Cadence Bank's Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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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.