Prosperity Bancshares, Inc. Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year
It's been a good week for Prosperity Bancshares, Inc. (NYSE:PB) shareholders, because the company has just released its latest quarterly results, and the shares gained 2.4% to US$74.87. It looks like a credible result overall - although revenues of US$384m were in line with what the analysts predicted, Prosperity Bancshares surprised by delivering a statutory profit of US$1.67 per share, a notable 11% above 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
Taking into account the latest results, the most recent consensus for Prosperity Bancshares from twelve analysts is for revenues of US$1.75b in 2026. If met, it would imply a substantial 25% increase on its revenue over the past 12 months. Per-share earnings are expected to rise 5.5% to US$5.89. In the lead-up to this report, the analysts had been modelling revenues of US$1.74b and earnings per share (EPS) of US$5.61 in 2026. So the consensus seems to have become somewhat more optimistic on Prosperity Bancshares' earnings potential following these results.
Check out our latest analysis for Prosperity Bancshares
The consensus price target was unchanged at US$81.00, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. 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. Currently, the most bullish analyst values Prosperity Bancshares at US$90.00 per share, while the most bearish prices it at US$68.00. 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.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The analysts are definitely expecting Prosperity Bancshares' growth to accelerate, with the forecast 57% annualised growth to the end of 2026 ranking favourably alongside historical growth of 3.0% 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 7.9% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Prosperity Bancshares to grow faster than the wider industry.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Prosperity Bancshares' earnings potential next year. 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$81.00, 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 Prosperity Bancshares. Long-term earnings power is much more important than next year's profits. We have forecasts for Prosperity Bancshares going out to 2028, and you can see them free on our platform here.
That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with Prosperity Bancshares , and understanding it should be part of your investment process.
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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.