The quarterly results for Valley National Bancorp (NASDAQ:VLY) were released last week, making it a good time to revisit its performance. It was a credible result overall, with revenues of US$471m and statutory earnings per share of US$0.18 both in line with analyst estimates, showing that Valley National Bancorp is executing in line with expectations. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Check out our latest analysis for Valley National Bancorp

Following the latest results, Valley National Bancorp's ten analysts are now forecasting revenues of US$1.98b in 2025. This would be a major 25% improvement in revenue compared to the last 12 months. Per-share earnings are expected to bounce 51% to US$0.94. Before this earnings report, the analysts had been forecasting revenues of US$2.00b and earnings per share (EPS) of US$0.95 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

The consensus price target rose 8.4% to US$10.30despite there being no meaningful change to earnings estimates. It could be that the analystsare reflecting the predictability of Valley National Bancorp's earnings by assigning a price premium. 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. Currently, the most bullish analyst values Valley National Bancorp at US$11.00 per share, while the most bearish prices it at US$9.00. This is a very narrow spread of estimates, implying either that Valley National Bancorp is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Valley National Bancorp's growth to accelerate, with the forecast 20% annualised growth to the end of 2025 ranking favourably alongside historical growth of 13% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 6.7% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Valley National Bancorp is expected to grow much faster than its 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. 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. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

With that in mind, we wouldn't be too quick to come to a conclusion on Valley National Bancorp. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Valley National Bancorp analysts - going out to 2026, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 1 warning sign for Valley National Bancorp that you need to be mindful of.

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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.