Westpac Banking Corporation (ASX:WBC) came out with its full-year results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. Results look mixed - while revenue fell marginally short of analyst estimates at AU$21b, statutory earnings beat expectations 6.3%, with Westpac Banking reporting profits of AU$2.01 per share. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Westpac Banking after the latest results.

View our latest analysis for Westpac Banking

Taking into account the latest results, the current consensus from Westpac Banking's twelve analysts is for revenues of AU$22.4b in 2025. This would reflect a credible 6.3% increase on its revenue over the past 12 months. Statutory earnings per share are forecast to shrink 3.0% to AU$1.97 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of AU$22.3b and earnings per share (EPS) of AU$1.87 in 2025. So the consensus seems to have become somewhat more optimistic on Westpac Banking's earnings potential following these results.

The consensus price target was unchanged at AU$27.51, 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. The most optimistic Westpac Banking analyst has a price target of AU$33.00 per share, while the most pessimistic values it at AU$20.00. 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.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The analysts are definitely expecting Westpac Banking's growth to accelerate, with the forecast 6.3% annualised growth to the end of 2025 ranking favourably alongside historical growth of 2.3% 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 4.4% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Westpac Banking is expected to grow much faster than its industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Westpac Banking's earnings potential next year. 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 no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Westpac Banking going out to 2027, 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 Westpac Banking that you should be aware 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.