Analysts Are Updating Their Prosperity Bancshares, Inc. (NYSE:PB) Estimates After Its Third-Quarter Results

Investors in Prosperity Bancshares, Inc. (NYSE:PB) had a good week, as its shares rose 4.5% to close at US$65.82 following the release of its quarterly results. Results were roughly in line with estimates, with revenues of US$315m and statutory earnings per share of US$1.45. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

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Taking into account the latest results, the most recent consensus for Prosperity Bancshares from 13 analysts is for revenues of US$1.49b in 2026. If met, it would imply a major 20% increase on its revenue over the past 12 months. Per-share earnings are expected to rise 8.4% to US$6.08. Before this earnings report, the analysts had been forecasting revenues of US$1.51b and earnings per share (EPS) of US$6.26 in 2026. 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 minor downgrade to their earnings per share forecasts.

See our latest analysis for Prosperity Bancshares

The consensus price target held steady at US$78.67, 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. There are some variant perceptions on Prosperity Bancshares, with the most bullish analyst valuing it at US$85.00 and the most bearish at US$70.00 per share. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's clear from the latest estimates that Prosperity Bancshares' rate of growth is expected to accelerate meaningfully, with the forecast 16% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 1.1% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 8.1% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Prosperity Bancshares to grow faster than 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 Prosperity Bancshares. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is 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 forecasts for Prosperity Bancshares going out to 2027, and you can see them free on our platform here.

Before you take the next step you should know about the 1 warning sign for Prosperity Bancshares that we have uncovered.

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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.