Yahoo Finance TrustCo Bank Corp NY Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next
It's been a good week for TrustCo Bank Corp NY (NASDAQ:TRST) shareholders, because the company has just released its latest quarterly results, and the shares gained 4.2% to US$27.06. TrustCo Bank Corp NY missed revenue estimates by 4.0%, coming in atUS$41m, although statutory earnings per share (EPS) of US$0.64 beat expectations, coming in 6.7% ahead of analyst estimates. The analyst typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we gathered the latest post-earnings forecasts to see what estimate suggests is in store for next year.
See our latest analysis for TrustCo Bank Corp NY
Taking into account the latest results, the single analyst covering TrustCo Bank Corp NY provided consensus estimates of US$168.6m revenue in 2024, which would reflect a noticeable 5.5% decline over the past 12 months. Statutory earnings per share are expected to fall 15% to US$2.38 in the same period. Before this earnings report, the analyst had been forecasting revenues of US$177.5m and earnings per share (EPS) of US$2.54 in 2024. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a small dip in earnings per share estimates.
It'll come as no surprise then, to learn that the analyst has cut their price target 10% to US$26.00.
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. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 7.3% by the end of 2024. This indicates a significant reduction from annual growth of 3.2% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 6.0% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - TrustCo Bank Corp NY is expected to lag the wider industry.
The Bottom Line
The most important thing to take away is that the analyst downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. The consensus price target fell measurably, with the analyst seemingly not reassured by the latest results, leading to a lower estimate of TrustCo Bank Corp NY's future valuation.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for TrustCo Bank Corp NY going out as far as 2025, and you can see them free on our platform here.
You can also see our analysis of TrustCo Bank Corp NY's Board and CEO remuneration and experience, and whether company insiders have been buying stock.
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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.
