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Enterprise Financial Services Corp Just Missed EPS By 26%: Here's What Analysts Think Will Happen Next

Enterprise Financial Services Corp (NASDAQ:EFSC) just released its latest third-quarter report and things are not looking great. Results showed a clear earnings miss, with US$76m revenue coming in 4.4% lower than what the analystsexpected. Statutory earnings per share (EPS) of US$0.68 missed the mark badly, arriving some 26% below what was expected. 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.

View our latest analysis for Enterprise Financial Services

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After the latest results, the five analysts covering Enterprise Financial Services are now predicting revenues of US$359.4m in 2021. If met, this would reflect a substantial 45% improvement in sales compared to the last 12 months. Per-share earnings are expected to increase 6.1% to US$3.00. In the lead-up to this report, the analysts had been modelling revenues of US$359.4m and earnings per share (EPS) of US$3.00 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.

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There were no changes to revenue or earnings estimates or the price target of US$36.00, suggesting that the company has met expectations in its recent result. 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. The most optimistic Enterprise Financial Services analyst has a price target of US$42.00 per share, while the most pessimistic values it at US$33.00. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The analysts are definitely expecting Enterprise Financial Services' growth to accelerate, with the forecast 45% growth ranking favourably alongside historical growth of 14% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 1.4% next year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Enterprise Financial Services 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. The consensus price target held steady at US$36.00, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Enterprise Financial Services going out to 2022, and you can see them free on our platform here.

You can also see whether Enterprise Financial Services is carrying too much debt, and whether its balance sheet is healthy, 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.

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