Revenue Downgrade: Here's What Analysts Forecast For Provident Financial Services, Inc. (NYSE:PFS)

The latest analyst coverage could presage a bad day for Provident Financial Services, Inc. (NYSE:PFS), with the analysts making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. Revenue estimates were cut sharply as analysts signalled a weaker outlook - perhaps a sign that investors should temper their expectations as well.

After this downgrade, Provident Financial Services' four analysts are now forecasting revenues of US$729m in 2023. This would be a major 47% improvement in sales compared to the last 12 months. Statutory earnings per share are anticipated to descend 12% to US$2.08 in the same period. Prior to this update, the analysts had been forecasting revenues of US$814m and earnings per share (EPS) of US$2.09 in 2023. So there's been a clear change in analyst sentiment in the recent update, with the analysts making a substantial drop in revenues and reconfirming their earnings per share estimates.

See our latest analysis for Provident Financial Services

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that Provident Financial Services' rate of growth is expected to accelerate meaningfully, with the forecast 47% annualised revenue growth to the end of 2023 noticeably faster than its historical growth of 9.7% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 6.7% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Provident Financial Services to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with analysts reconfirming that earnings per share are expected to continue performing in line with their prior expectations. While analysts did downgrade their revenue estimates, these forecasts still imply revenues will perform better than the wider market. Given the stark change in sentiment, we'd understand if investors became more cautious on Provident Financial Services after today.

Still, the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Provident Financial Services analysts - going out to 2024, and you can see them free on our platform here.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are downgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.

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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.