In This Article:
TBC Bank Group PLC (LON:TBCG) came out with its quarterly results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. The results were positive, with revenue coming in at GEL409m, beating analyst expectations by 5.8%. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
Check out our latest analysis for TBC Bank Group
After the latest results, the six analysts covering TBC Bank Group are now predicting revenues of GEL1.71b in 2022. If met, this would reflect a meaningful 8.0% improvement in sales compared to the last 12 months. Statutory earnings per share are forecast to descend 13% to GEL14.03 in the same period. In the lead-up to this report, the analysts had been modelling revenues of GEL1.71b and earnings per share (EPS) of GEL14.72 in 2022. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a small dip in their earnings per share forecasts.
It might be a surprise to learn that the consensus price target was broadly unchanged at UK£20.94, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. 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. There are some variant perceptions on TBC Bank Group, with the most bullish analyst valuing it at UK£26.77 and the most bearish at UK£14.92 per share. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business 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. We can infer from the latest estimates that forecasts expect a continuation of TBC Bank Group'shistorical trends, as the 11% annualised revenue growth to the end of 2022 is roughly in line with the 14% annual revenue growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 5.1% annually. So it's pretty clear that TBC Bank Group is forecast to grow substantially faster than its industry.