Yahoo Finance WesBanco, Inc. (NASDAQ:WSBC) Yearly Results: Here's What Analysts Are Forecasting For This Year
WesBanco, Inc. (NASDAQ:WSBC) 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. It was a credible result overall, with revenues of US$593m and statutory earnings per share of US$3.02 both in line with analyst estimates, showing that WesBanco is executing in line with expectations. 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 thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
See our latest analysis for WesBanco
Taking into account the latest results, the most recent consensus for WesBanco from seven analysts is for revenues of US$655.5m in 2023 which, if met, would be a decent 10% increase on its sales over the past 12 months. Per-share earnings are expected to increase 7.5% to US$3.31. Before this earnings report, the analysts had been forecasting revenues of US$655.6m and earnings per share (EPS) of US$3.31 in 2023. 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$41.00, suggesting that the company has met expectations in its recent result. 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. Currently, the most bullish analyst values WesBanco at US$45.00 per share, while the most bearish prices it at US$38.00. 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 WesBanco's past performance and to peers in the same industry. We can infer from the latest estimates that forecasts expect a continuation of WesBanco'shistorical trends, as the 10% annualised revenue growth to the end of 2023 is roughly in line with the 10% annual revenue growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 6.5% annually. So although WesBanco is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.
The Bottom Line
The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at US$41.00, with the latest estimates not enough to have an impact on their price targets.
With that in mind, we wouldn't be too quick to come to a conclusion on WesBanco. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple WesBanco analysts - going out to 2024, and you can see them free on our platform here.
However, before you get too enthused, we've discovered 1 warning sign for WesBanco that you should be aware 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.
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