Renasant Corporation Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions

As you might know, Renasant Corporation (NYSE:RNST) just kicked off its latest quarterly results with some very strong numbers. The company beat forecasts, with revenue of US$174m, some 2.2% above estimates, and statutory earnings per share (EPS) coming in at US$0.65, 23% ahead of expectations. 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 thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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Taking into account the latest results, the consensus forecast from Renasant's six analysts is for revenues of US$979.0m in 2025. This reflects a substantial 38% improvement in revenue compared to the last 12 months. Statutory earnings per share are forecast to crater 27% to US$2.27 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$965.7m and earnings per share (EPS) of US$1.95 in 2025. Although the revenue estimates have not really changed, we can see there's been a substantial gain in earnings per share expectations, suggesting that the analysts have become more bullish after the latest result.

Check out our latest analysis for Renasant

There's been no major changes to the consensus price target of US$40.75, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. 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 Renasant at US$45.00 per share, while the most bearish prices it at US$34.50. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company 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 Renasant's rate of growth is expected to accelerate meaningfully, with the forecast 53% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 3.1% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 7.1% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Renasant is expected to grow much faster than its industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Renasant's earnings potential next year. Happily, there were no major changes to revenue forecasts, with the business still 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.

With that in mind, we wouldn't be too quick to come to a conclusion on Renasant. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Renasant going out to 2026, and you can see them free on our platform here..

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.

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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.