Investors in United Bankshares, Inc. (NASDAQ:UBSI) had a good week, as its shares rose 6.5% to close at US$39.32 following the release of its quarterly results. It looks like a credible result overall - although revenues of US$256m were in line with what the analysts predicted, United Bankshares surprised by delivering a statutory profit of US$0.71 per share, a notable 10% above expectations. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. 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 United Bankshares

Taking into account the latest results, the current consensus from United Bankshares' four analysts is for revenues of US$1.03b in 2024. This would reflect an okay 2.1% increase on its revenue over the past 12 months. Statutory per-share earnings are expected to be US$2.68, roughly flat on the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of US$1.03b and earnings per share (EPS) of US$2.60 in 2024. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

The consensus price target rose 7.0% to US$40.00, suggesting that higher earnings estimates flow through to the stock's valuation as well. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic United Bankshares analyst has a price target of US$44.00 per share, while the most pessimistic values it at US$36.00. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting United Bankshares is an easy business to forecast or the the analysts are all using similar assumptions.

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. We would highlight that United Bankshares' revenue growth is expected to slow, with the forecast 4.3% annualised growth rate until the end of 2024 being well below the historical 7.6% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 6.4% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than United Bankshares.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around United Bankshares' earnings potential next year. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse 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.

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 forecasts for United Bankshares going out to 2025, and you can see them free on our platform here.

We also provide an overview of the United Bankshares Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

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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.

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