The Bank of N.T. Butterfield & Son Limited (NYSE:NTB) Released Earnings Last Week And Analysts Lifted Their Price Target To US$41.50

As you might know, The Bank of N.T. Butterfield & Son Limited (NYSE:NTB) just kicked off its latest quarterly results with some very strong numbers. The company beat expectations with revenues of US$143m arriving 2.4% ahead of forecasts. Statutory earnings per share (EPS) were US$1.09, 4.1% ahead of 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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

Following last week's earnings report, Bank of N.T. Butterfield & Son's four analysts are forecasting 2024 revenues to be US$572.2m, approximately in line with the last 12 months. Statutory per share are forecast to be US$4.53, approximately in line with the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of US$566.2m and earnings per share (EPS) of US$4.46 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.

With the analysts reconfirming their revenue and earnings forecasts, it's surprising to see that the price target rose 7.0% to US$41.50. It looks as though they previously had some doubts over whether the business would live up to their expectations. 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. Currently, the most bullish analyst values Bank of N.T. Butterfield & Son at US$44.00 per share, while the most bearish prices it at US$40.00. This is a very narrow spread of estimates, implying either that Bank of N.T. Butterfield & Son 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. We would highlight that Bank of N.T. Butterfield & Son's revenue growth is expected to slow, with the forecast 0.04% annualised growth rate until the end of 2024 being well below the historical 2.6% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 6.3% annually. Factoring in the forecast slowdown in growth, it seems obvious that Bank of N.T. Butterfield & Son is also expected to grow slower than other industry participants.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Bank of N.T. Butterfield & Son going out to 2026, and you can see them free on our platform here..

You still need to take note of risks, for example - Bank of N.T. Butterfield & Son has 2 warning signs (and 1 which can't be ignored) we think 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.

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