Yahoo Finance Trustmark Corporation Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next
It's been a pretty great week for Trustmark Corporation (NASDAQ:TRMK) shareholders, with its shares surging 16% to US$29.82 in the week since its latest first-quarter results. Revenues were US$192m, approximately in line with expectations, although statutory earnings per share (EPS) performed substantially better. EPS of US$0.68 were also better than expected, beating analyst predictions by 12%. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Check out our latest analysis for Trustmark
Taking into account the latest results, the most recent consensus for Trustmark from six analysts is for revenues of US$769.0m in 2024. If met, it would imply a credible 5.7% increase on its revenue over the past 12 months. Statutory earnings per share are forecast to shrink 3.8% to US$2.46 in the same period. In the lead-up to this report, the analysts had been modelling revenues of US$772.0m and earnings per share (EPS) of US$2.45 in 2024. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
The analysts reconfirmed their price target of US$30.60, showing that the business is executing well and in line with expectations. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Trustmark analyst has a price target of US$34.00 per share, while the most pessimistic values it at US$29.00. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Trustmark's past performance and to peers in the same industry. The analysts are definitely expecting Trustmark's growth to accelerate, with the forecast 7.6% annualised growth to the end of 2024 ranking favourably alongside historical growth of 4.4% 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 6.0% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Trustmark 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 the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. 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.
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 Trustmark going out to 2025, and you can see them free on our platform here.
You can also see whether Trustmark is carrying too much debt, and whether its balance sheet is healthy, for free 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.
