Earnings Update: National Bank of Canada (TSE:NA) Just Reported Its Yearly Results And Analysts Are Updating Their Forecasts

·3 min read

Last week, you might have seen that National Bank of Canada (TSE:NA) released its yearly result to the market. The early response was not positive, with shares down 6.1% to CA$96.11 in the past week. Results look mixed - while revenue fell marginally short of analyst estimates at CA$8.9b, statutory earnings were in line with expectations, at CA$8.96 per share. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Check out our latest analysis for National Bank of Canada

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Taking into account the latest results, the consensus forecast from National Bank of Canada's eleven analysts is for revenues of CA$9.49b in 2022, which would reflect a modest 6.4% improvement in sales compared to the last 12 months. Statutory per-share earnings are expected to be CA$9.02, roughly flat on the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of CA$9.43b and earnings per share (EPS) of CA$8.95 in 2022. 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 analysts reconfirmed their price target of CA$106, showing that the business is executing well and in line with expectations. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic National Bank of Canada analyst has a price target of CA$113 per share, while the most pessimistic values it at CA$99.00. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The period to the end of 2022 brings more of the same, according to the analysts, with revenue forecast to display 6.4% growth on an annualised basis. That is in line with its 7.2% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 4.0% annually. So although National Bank of Canada is expected to maintain its revenue growth rate, it's definitely expected 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 CA$106, 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. At Simply Wall St, we have a full range of analyst estimates for National Bank of Canada going out to 2023, and you can see them free on our platform here..

We also provide an overview of the National Bank of Canada Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

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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.

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