Stock Analysis

The Community Bank System, Inc. (NYSE:CBU) Yearly Results Are Out And Analysts Have Published New Forecasts

NYSE:CBU
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Community Bank System, Inc. (NYSE:CBU) came out with its yearly results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. Revenues of US$641m were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at US$2.53, missing estimates by 4.5%. 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 Community Bank System after the latest results.

See our latest analysis for Community Bank System

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NYSE:CBU Earnings and Revenue Growth January 26th 2024

Taking into account the latest results, the most recent consensus for Community Bank System from eight analysts is for revenues of US$721.6m in 2024. If met, it would imply a solid 13% increase on its revenue over the past 12 months. Per-share earnings are expected to bounce 26% to US$3.22. Before this earnings report, the analysts had been forecasting revenues of US$711.7m and earnings per share (EPS) of US$3.22 in 2024. 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.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at US$53.14. 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 Community Bank System, with the most bullish analyst valuing it at US$60.00 and the most bearish at US$49.00 per share. This is a very narrow spread of estimates, implying either that Community Bank System 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 analysts are definitely expecting Community Bank System's growth to accelerate, with the forecast 13% annualised growth to the end of 2024 ranking favourably alongside historical growth of 3.3% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 5.5% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Community Bank System is expected to grow much faster than its 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. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

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 Community Bank System analysts - going out to 2025, and you can see them free on our platform here.

Plus, you should also learn about the 1 warning sign we've spotted with Community Bank System .

Valuation is complex, but we're helping make it simple.

Find out whether Community Financial System is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

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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.