Pacific Premier Bancorp, Inc. (NASDAQ:PPBI) 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$193m, some 3.4% above estimates, and statutory earnings per share (EPS) coming in at US$0.70, 26% ahead of expectations. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
Taking into account the latest results, the consensus forecast from Pacific Premier Bancorp's five analysts is for revenues of US$706.0m in 2021, which would reflect a huge 83% improvement in sales compared to the last 12 months. Statutory earnings per share are predicted to soar 340% to US$2.04. In the lead-up to this report, the analysts had been modelling revenues of US$714.4m and earnings per share (EPS) of US$2.01 in 2021. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
The consensus price target rose 11% to US$29.00despite there being no meaningful change to earnings estimates. It could be that the analystsare reflecting the predictability of Pacific Premier Bancorp's earnings by assigning a price premium. 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. There are some variant perceptions on Pacific Premier Bancorp, with the most bullish analyst valuing it at US$30.00 and the most bearish at US$26.00 per share. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Pacific Premier Bancorp is an easy business to forecast or the the analysts are all using similar assumptions.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The analysts are definitely expecting Pacific Premier Bancorp's growth to accelerate, with the forecast 83% growth ranking favourably alongside historical growth of 27% 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 1.3% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Pacific Premier Bancorp 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. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Pacific Premier Bancorp going out to 2022, and you can see them free on our platform here..
You still need to take note of risks, for example - Pacific Premier Bancorp has 5 warning signs (and 1 which is concerning) we think you should know about.
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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