Yahoo Finance Southside Bancshares, Inc. Just Recorded A 11% EPS Beat: Here's What Analysts Are Forecasting Next
As you might know, Southside Bancshares, Inc. (NASDAQ:SBSI) recently reported its first-quarter numbers. Revenues were US$64m, approximately in line with expectations, although statutory earnings per share (EPS) performed substantially better. EPS of US$0.77 were also better than expected, beating analyst predictions by 11%. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
Check out our latest analysis for Southside Bancshares
Taking into account the latest results, the most recent consensus for Southside Bancshares from five analysts is for revenues of US$261.2m in 2022 which, if met, would be a reasonable 6.6% increase on its sales over the past 12 months. Statutory earnings per share are forecast to decrease 3.6% to US$3.11 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$258.0m and earnings per share (EPS) of US$2.91 in 2022. So the consensus seems to have become somewhat more optimistic on Southside Bancshares' earnings potential following these results.
There's been no major changes to the consensus price target of US$43.80, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Southside Bancshares, with the most bullish analyst valuing it at US$45.00 and the most bearish at US$42.00 per share. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Southside Bancshares is an easy business to forecast or the the analysts are all using similar assumptions.
Of course, another way to look at these forecasts is to place them into context against the industry itself. The period to the end of 2022 brings more of the same, according to the analysts, with revenue forecast to display 8.8% growth on an annualised basis. That is in line with its 8.1% annual growth over the past five years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 7.8% per year. It's clear that while Southside Bancshares' revenue growth is expected to continue on its current trajectory, it's only expected to grow in line with the industry itself.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Southside Bancshares' earnings potential next year. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as 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.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Southside Bancshares going out to 2023, and you can see them free on our platform here..
We don't want to rain on the parade too much, but we did also find 2 warning signs for Southside Bancshares (1 is concerning!) that you need to be mindful of.
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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.
