Investors in Zions Bancorporation, National Association (NASDAQ:ZION) had a good week, as its shares rose 2.2% to close at US$45.25 following the release of its quarterly results. Revenues of US$806m were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at US$1.13, missing estimates by 4.4%. 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 thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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Taking into account the latest results, the consensus forecast from Zions Bancorporation National Association's 14 analysts is for revenues of US$3.27b in 2025. This reflects a reasonable 5.2% improvement in revenue compared to the last 12 months. Statutory per share are forecast to be US$5.17, approximately in line with the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of US$3.29b and earnings per share (EPS) of US$5.26 in 2025. 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 Zions Bancorporation National Association

With no major changes to earnings forecasts, the consensus price target fell 8.1% to US$53.95, suggesting that the analysts might have previously been hoping for an earnings upgrade. 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. There are some variant perceptions on Zions Bancorporation National Association, with the most bullish analyst valuing it at US$61.00 and the most bearish at US$47.00 per share. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Zions Bancorporation National Association is an easy business to forecast or the the analysts are all using similar 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 Zions Bancorporation National Association's growth to accelerate, with the forecast 7.0% annualised growth to the end of 2025 ranking favourably alongside historical growth of 3.8% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 6.9% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Zions Bancorporation National Association is expected to grow at about the same rate as the wider industry.

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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. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Zions Bancorporation National Association's future valuation.

With that in mind, we wouldn't be too quick to come to a conclusion on Zions Bancorporation National Association. Long-term earnings power is much more important than next year's profits. We have forecasts for Zions Bancorporation National Association going out to 2027, and you can see them free on our platform here.

You can also see whether Zions Bancorporation National Association is carrying too much debt, and whether its balance sheet is healthy, for free  on our platform 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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