Investors in Zions Bancorporation, National Association (NASDAQ:ZION) had a strong week, with its shares rising 7.3% to close at US$51.77 following the release of its annual results. Zions Bancorporation National Association missed revenue estimates by 4.0%, with sales of $3.0 billion, although statutory earnings per share (EPS) of $5.79 beat expectations, topping 3.2% analysts estimate. Earnings are an important time for investors because they can follow a company’s performance, watch what analysts predict for the next year, and see if there has been a change in sentiment towards the company. So we’ve rounded up the latest post-earnings guidance to see what the estimates suggest for next year.

Check out our latest analysis for Zions Bancorporation National Association

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NasdaqGS: ZION Earnings and Revenue Growth January 25, 2023

Given the latest results, the most recent consensus for the Zions Bancorporation National Association from 17 analysts is for revenue of US$3.46 billion in 2023, which, if achieved, would represent a significant increase of 14 % of its sales in the last 12 months. Statutory earnings per share are expected to rise 9.7% to US$6.48. Looking ahead to this report, analysts had modeled revenue of US$3.56 billion and earnings per share (EPS) of US$6.64 in 2023. Analysts are less optimistic than they were before these results, given the reduced revenue forecast and the minor downward revision to earnings per share expectations.

Analysts made no major changes to their price target of US$58.11, suggesting that the downward revisions should not have a long-term impact on Zions Bancorporation National Association’s valuation. There is, however, another way to think about price targets, and that is to look at the range of price targets offered by analysts, as a wide range of estimates could suggest a diverse view of possible outcomes for the market. business. There are varying perceptions on the Zions Bancorporation National Association, with the most bullish analyst pricing it at US$66.00 and the most bearish at US$49.00 per share. With such a narrow valuation range, analysts apparently share similar views on what they think the company is worth.

Of course, another way to look at these predictions is to put them into context. the industry itself. It’s clear from the latest estimates that Zions Bancorporation National Association’s growth rate is set to accelerate significantly, with forecast annualized revenue growth of 14% through the end of 2023 significantly faster than its historical growth. 2.7% per year over the past five years. Compare that with other companies in the same industry, which are expected to grow revenue by 6.4% per year. Factoring in the expected revenue acceleration, it’s pretty clear that Zions Bancorporation National Association is expected to grow much faster than its industry.

The essential

The most important thing to remember is that analysts have lowered their earnings per share estimates, which shows that there has been a marked drop in sentiment following these results. They also lowered their revenue estimates, although industry data suggests Zions Bancorporation National Association revenue is expected to grow faster than the industry as a whole. The consensus price target held steady at US$58.11 as the latest estimates were not enough to impact their price targets.

With that in mind, we wouldn’t be too quick to come to a conclusion about Zions Bancorporation National Association. Long-term earnings power is much more important than next year’s earnings. At Simply Wall St, we have a full range of analyst estimates for the Zions Bancorporation National Association out to 2025, and you can see them for free on our platform here..

And what about the risks? Every business has them, and we’ve spotted 1 warning sign for Zions Bancorporation National Association you should know.

Valuation is complex, but we help make it simple.

Find out if Zions Bancorporation National Association is potentially overvalued or undervalued by viewing our full analysis, which includes fair value estimates, risks and warnings, dividends, insider trading and financial health.

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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

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