Atlantic Union Bankshares Corporation (NASDAQ:AUB) investors will be delighted, with the company turning in some strong numbers with its latest results. The company beat both earnings and revenue forecasts, with revenue of US$175m, some 4.3% above estimates, and statutory earnings per share (EPS) coming in at US$0.74, 56% ahead of expectations. The 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Taking into account the latest results, the current consensus from Atlantic Union Bankshares' six analysts is for revenues of US$663.4m in 2021, which would reflect a decent 17% increase on its sales over the past 12 months. Statutory earnings per share are predicted to ascend 20% to US$2.19. Before this earnings report, the analysts had been forecasting revenues of US$663.4m and earnings per share (EPS) of US$1.97 in 2021. There was no real change to the revenue estimates, but the analysts do seem more bullish on earnings, given the nice increase in earnings per share expectations following these results.
There's been no major changes to the consensus price target of US$28.33, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Atlantic Union Bankshares at US$30.00 per share, while the most bearish prices it at US$23.00. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Atlantic Union Bankshares is an easy business to forecast or the the analysts are all using similar assumptions.
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. We can infer from the latest estimates that forecasts expect a continuation of Atlantic Union Bankshares'historical trends, as next year's 17% revenue growth is roughly in line with 17% annual revenue growth over the past five years. Compare this with the wider industry, which analyst estimates (in aggregate) suggest will see revenues grow 1.4% next year. So it's pretty clear that Atlantic Union Bankshares is forecast to grow substantially faster than its industry.
The Bottom Line
The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Atlantic Union Bankshares following these results. 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. At Simply Wall St, we have a full range of analyst estimates for Atlantic Union Bankshares going out to 2022, and you can see them free on our platform here..
You can also view our analysis of Atlantic Union Bankshares' balance sheet, and whether we think Atlantic Union Bankshares is carrying too much debt, for free on our platform here.
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. 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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