Yahoo Finance Pinnacle Financial Partners, Inc. Just Recorded A 31% EPS Beat: Here's What Analysts Are Forecasting Next
Pinnacle Financial Partners, Inc. (NASDAQ:PNFP) just released its quarterly report and things are looking bullish. The company beat both earnings and revenue forecasts, with revenue of US$298m, some 5.6% above estimates, and statutory earnings per share (EPS) coming in at US$1.42, 31% 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.
Check out our latest analysis for Pinnacle Financial Partners
Taking into account the latest results, the most recent consensus for Pinnacle Financial Partners from eight analysts is for revenues of US$1.18b in 2021 which, if met, would be a major 31% increase on its sales over the past 12 months. Per-share earnings are expected to expand 14% to US$4.41. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$1.12b and earnings per share (EPS) of US$3.99 in 2021. So it seems there's been a definite increase in optimism about Pinnacle Financial Partners' future following the latest results, with a decent improvement in the earnings per share forecasts in particular.
Despite these upgrades,the analysts have not made any major changes to their price target of US$50.56, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth. 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. There are some variant perceptions on Pinnacle Financial Partners, with the most bullish analyst valuing it at US$58.00 and the most bearish at US$44.00 per share. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Pinnacle Financial Partners' past performance and to peers in the same industry. The analysts are definitely expecting Pinnacle Financial Partners' growth to accelerate, with the forecast 31% growth ranking favourably alongside historical growth of 23% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 1.5% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Pinnacle Financial Partners to grow faster than the wider industry.
The Bottom Line
The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Pinnacle Financial Partners following these results. Happily, they also upgraded their revenue estimates, and are forecasting revenues to grow faster than the wider industry. The consensus price target held steady at US$50.56, with the latest estimates not enough to have an impact on their price targets.
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 estimates - from multiple Pinnacle Financial Partners analysts - going out to 2022, and you can see them free on our platform here.
It is also worth noting that we have found 2 warning signs for Pinnacle Financial Partners that you need to take into consideration.
This article by Simply Wall St is general in nature. 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.
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