Bank Millennium S.A. (WSE:MIL) Just Released Its Third-Quarter Earnings: Here's What Analysts Think

Investors in Bank Millennium S.A. (WSE:MIL) had a good week, as its shares rose 4.7% to close at zł23.30 following the release of its third-quarter results. Results overall were respectable, with statutory earnings of zł0.99 per share roughly in line with what the analysts had forecast. Revenues of zł1.7b came in 2.7% ahead of analyst predictions. The analysts 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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Taking into account the latest results, the consensus forecast from Bank Millennium's five analysts is for revenues of zł7.14b in 2027. This reflects a credible 4.7% improvement in revenue compared to the last 12 months. Per-share earnings are expected to shoot up 65% to zł1.98. Yet prior to the latest earnings, the analysts had been anticipated revenues of zł7.13b and earnings per share (EPS) of zł1.69 in 2027. Although the revenue estimates have not really changed, we can see there's been a nice increase in earnings per share expectations, suggesting that the analysts have become more bullish after the latest result.

See our latest analysis for Bank Millennium

The consensus price target was unchanged at zł20.36, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Bank Millennium at zł24.00 per share, while the most bearish prices it at zł17.10. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

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. It's pretty clear that there is an expectation that Bank Millennium's revenue growth will slow down substantially, with revenues to the end of 2027 expected to display 3.7% growth on an annualised basis. This is compared to a historical growth rate of 15% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 5.9% per year. Factoring in the forecast slowdown in growth, it seems obvious that Bank Millennium is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Bank Millennium following these results. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at zł20.36, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Bank Millennium analysts - going out to 2028, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 1 warning sign for Bank Millennium that you should be aware of.

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