German American Bancorp, Inc. Annual Results Just Came Out: Here's What Analysts Are Forecasting For Next Year

Last week saw the newest full-year earnings release from German American Bancorp, Inc. (NASDAQ:GABC), an important milestone in the company's journey to build a stronger business. Results look mixed - while revenue fell marginally short of analyst estimates at US$185m, statutory earnings were in line with expectations, at US$2.29 per share. This is an important time for investors, as they can track a company's performance in its report, look at what top analysts 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 analysts' statutory forecasts suggest is in store for next year.

See our latest analysis for German American Bancorp

Taking into account the latest results, the most recent consensus for German American Bancorp from four analysts is for revenues of US$200.8m in 2020, which is a notable 8.3% increase on its sales over the past 12 months. Statutory per share are forecast to be US$2.33, approximately in line with the last 12 months. Before this earnings report, analysts had been forecasting revenues of US$203.0m and earnings per share (EPS) of US$2.35 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$34.38, 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. There are some variant perceptions on German American Bancorp, with the most bullish analyst valuing it at US$36.50 and the most bearish at US$33.00 per share. Still, with such a tight range of estimates, it suggests analysts have a pretty good idea of what they think the company is worth.

It can be useful to take a broader overview by seeing how analyst forecasts compare, both to the German American Bancorp's past performance and to peers in the same market. It's pretty clear that analysts expect German American Bancorp's revenue growth will slow down substantially, with revenues next year expected to grow 8.3%, compared to a historical growth rate of 12% over the past five years. By way of comparison, other companies in this market with analyst coverage, are forecast to grow their revenue at 5.1% next year. Even after the forecast slowdown in growth, it seems obvious that analysts still thinkGerman American Bancorp will grow faster than the wider market.

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. Fortunately, analysts also reconfirmed their revenue estimates, suggesting sales are tracking in line with expectations - and our data does suggest that German American Bancorp's revenues are expected to grow faster than the wider market. The consensus price target held steady at US$34.38, with the latest estimates not enough to have an impact on analysts' estimated valuations.

Still, the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for German American Bancorp going out to 2021, and you can see them free on our platform here.

It might also be worth considering whether German American Bancorp's debt load is appropriate, using our debt analysis tools on the Simply Wall St 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.