Enterprise Financial Services Corp (NASDAQ:EFSC) last week reported its latest quarterly results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. It looks like a credible result overall - although revenues of US$166m were in line with what the analysts predicted, Enterprise Financial Services surprised by delivering a statutory profit of US$1.31 per share, a notable 12% above 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 thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Our free stock report includes 1 warning sign investors should be aware of before investing in Enterprise Financial Services. Read for free now.NasdaqGS:EFSC Earnings and Revenue Growth May 1st 2025

Taking into account the latest results, the consensus forecast from Enterprise Financial Services' five analysts is for revenues of US$678.1m in 2025. This reflects a notable 9.5% improvement in revenue compared to the last 12 months. Statutory per share are forecast to be US$5.15, approximately in line with the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of US$658.9m and earnings per share (EPS) of US$4.91 in 2025. So there seems to have been a moderate uplift in sentiment following the latest results, given the upgrades to both revenue and earnings per share forecasts for next year.

See our latest analysis for Enterprise Financial Services

Althoughthe analysts have upgraded their earnings estimates, there was no change to the consensus price target of US$64.75, suggesting that the forecast performance does not have a long term impact on the company'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 Enterprise Financial Services at US$68.00 per share, while the most bearish prices it at US$60.00. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Enterprise Financial Services is an easy business to forecast or the the analysts are all using similar assumptions.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Enterprise Financial Services' past performance and to peers in the same industry. We would highlight that Enterprise Financial Services' revenue growth is expected to slow, with the forecast 13% annualised growth rate until the end of 2025 being well below the historical 19% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 7.1% annually. So it's pretty clear that, while Enterprise Financial Services' revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

Story Continues

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Enterprise Financial Services' earnings potential next year. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. The consensus price target held steady at US$64.75, 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 Enterprise Financial Services. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Enterprise Financial Services analysts - going out to 2026, and you can see them free on our platform here.

Even so, be aware that  Enterprise Financial Services is showing  1 warning sign in our investment analysis, you should know about...

Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

View Comments