South Plains Financial, Inc. Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions
The quarterly results for South Plains Financial, Inc. (NASDAQ:SPFI) were released last week, making it a good time to revisit its performance. South Plains Financial reported US$65m in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of US$1.06 beat expectations, being 7.9% higher than what the analysts expected. 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.
Taking into account the latest results, the current consensus from South Plains Financial's three analysts is for revenues of US$266.2m in 2027. This would reflect a solid 13% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to climb 12% to US$4.15. In the lead-up to this report, the analysts had been modelling revenues of US$271.3m and earnings per share (EPS) of US$4.19 in 2027. 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.
View our latest analysis for South Plains Financial
It will come as no surprise then, to learn that the consensus price target is largely unchanged at US$50.50. 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. Currently, the most bullish analyst values South Plains Financial at US$53.00 per share, while the most bearish prices it at US$49.00. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the South Plains Financial's past performance and to peers in the same industry. For example, we noticed that South Plains Financial's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 11% growth to the end of 2027 on an annualised basis. That is well above its historical decline of 1.2% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 8.0% per year. Not only are South Plains Financial's revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at US$50.50, with the latest estimates not enough to have an impact on their price targets.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for South Plains Financial going out to 2028, and you can see them free on our platform here.
Before you take the next step you should know about the 2 warning signs for South Plains Financial that we have uncovered.
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