The Bank of N.T. Butterfield & Son Limited (NYSE:NTB) Yearly Results: Here's What Analysts Are Forecasting For This Year

Investors in The Bank of N.T. Butterfield & Son Limited (NYSE:NTB) had a good week, as its shares rose 2.4% to close at US$30.13 following the release of its annual results. It was a credible result overall, with revenues of US$579m and statutory earnings per share of US$4.58 both in line with analyst estimates, showing that Bank of N.T. Butterfield & Son is executing in line with expectations. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Bank of N.T. Butterfield & Son after the latest results.

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

Taking into account the latest results, the five analysts covering Bank of N.T. Butterfield & Son provided consensus estimates of US$558.3m revenue in 2024, which would reflect a small 3.5% decline over the past 12 months. Statutory earnings per share are expected to decrease 9.5% to US$4.25 in the same period. Before this earnings report, the analysts had been forecasting revenues of US$558.3m and earnings per share (EPS) of US$4.38 in 2024. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a small dip in their earnings per share forecasts.

The consensus price target held steady at US$35.20, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Bank of N.T. Butterfield & Son analyst has a price target of US$40.00 per share, while the most pessimistic values it at US$32.00. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

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 3.5% by the end of 2024. This indicates a significant reduction from annual growth of 1.8% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 5.8% annually for the foreseeable future. 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 biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Bank of N.T. Butterfield & Son. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at US$35.20, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Bank of N.T. Butterfield & Son. Long-term earnings power is much more important than next year's profits. We have forecasts for Bank of N.T. Butterfield & Son going out to 2025, and you can see them free on our platform here.

It is also worth noting that we have found 2 warning signs for Bank of N.T. Butterfield & Son (1 is concerning!) that you need to take into consideration.

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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.