Earnings Update: Here's Why Analysts Just Lifted Their The Bank of N.T. Butterfield & Son Limited (NYSE:NTB) Price Target To US$44.50

It's been a good week for The Bank of N.T. Butterfield & Son Limited (NYSE:NTB) shareholders, because the company has just released its latest full-year results, and the shares gained 7.7% to US$41.31. The result was positive overall - although revenues of US$580m were in line with what the analysts predicted, Bank of N.T. Butterfield & Son surprised by delivering a statutory profit of US$4.71 per share, modestly greater than expected. 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 collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

View our latest analysis for Bank of N.T. Butterfield & Son

Taking into account the latest results, Bank of N.T. Butterfield & Son's four analysts currently expect revenues in 2025 to be US$571.7m, approximately in line with the last 12 months. Statutory earnings per share are forecast to shrink 6.9% to US$4.56 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$555.2m and earnings per share (EPS) of US$4.15 in 2025. So there seems to have been a moderate uplift in sentiment following the latest results, given the upgrades to both revenue and earnings per share forecasts for next year.

It will come as no surprise to learn that the analysts have increased their price target for Bank of N.T. Butterfield & Son 6.6% to US$44.50on the back of these upgrades. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Bank of N.T. Butterfield & Son at US$46.00 per share, while the most bearish prices it at US$44.00. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Bank of N.T. Butterfield & Son is an easy business to forecast or the the analysts are all using similar assumptions.

Of course, another way to look at these forecasts is to place them into context against the industry itself. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 1.4% by the end of 2025. This indicates a significant reduction from annual growth of 3.4% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 7.4% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Bank of N.T. Butterfield & Son is expected to lag the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Bank of N.T. Butterfield & Son following these results. They also upgraded their revenue estimates for next year, even though it is expected to grow slower than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Bank of N.T. Butterfield & Son going out to 2026, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 1 warning sign for Bank of N.T. Butterfield & Son that you need to be mindful of.

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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.