Associated Banc-Corp (NYSE:ASB) last week reported its latest annual results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. Results look mixed - while revenue fell marginally short of analyst estimates at US$1.2b, statutory earnings were in line with expectations, at US$1.91 per share. Analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We thought readers would find it interesting to see analysts' latest (statutory) post-earnings forecasts for next year.
See our latest analysis for Associated Banc-Corp
Following last week's earnings report, Associated Banc-Corp's eight analysts are forecasting 2020 revenues to be US$1.21b, approximately in line with the last 12 months. Statutory earnings per share are forecast to shrink 6.5% to US$1.82 in the same period. In the lead-up to this report, analysts had been modelling revenues of US$1.22b and earnings per share (EPS) of US$1.81 in 2020. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
There were no changes to revenue or earnings estimates or the price target of US$22.00, suggesting that the company has met expectations in its recent result. The consensus price target just an average of individual analyst targets, so - considering that the price target changed, it would be handy to see how wide the range of underlying estimates is. The most optimistic Associated Banc-Corp analyst has a price target of US$25.00 per share, while the most pessimistic values it at US$17.00. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that Associated Banc-Corp's revenue growth is expected to slow, with forecast 1.2% increase next year well below the historical 6.2%p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the market, which are in aggregate expected to see revenue growth of 4.9% next year. So it's pretty clear that, while revenue growth is expected to slow down, analysts still expect the wider market to grow faster than Associated Banc-Corp.
The Bottom Line
The most obvious conclusion from these results is that there's been no major change in the business' prospects in recent times, with analysts holding earnings per share steady, in line with previous estimates. On the plus side, there were no major changes to revenue estimates; although analyst forecasts imply revenues will perform worse than the wider market. The consensus price target held steady at US$22.00, with the latest estimates not enough to have an impact on analysts' estimated valuations.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Associated Banc-Corp going out to 2021, and you can see them free on our platform here.
You can also see whether Associated Banc-Corp is carrying too much debt, and whether its balance sheet is healthy, for free on our platform here.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.
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January 26, 2020 at 06:52PM
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Associated Banc-Corp Yearly Results: Here's What Analysts Are Forecasting For Next Year - Yahoo Finance
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