Shareholders might have noticed that Westpac Banking Corporation (ASX:WBC) filed its half-yearly result this time last week. The early response was not positive, with shares down 2.6% to AU$31.81 in the past week. Westpac Banking missed revenue estimates by 2.2%, coming in atAU$11b, although statutory earnings per share (EPS) of AU$0.96 beat expectations, coming in 3.2% ahead of analyst estimates. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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Taking into account the latest results, the most recent consensus for Westpac Banking from 13 analysts is for revenues of AU$22.0b in 2025. If met, it would imply a credible 3.0% increase on its revenue over the past 12 months. Statutory earnings per share are expected to dip 3.2% 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$1.98 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.

View our latest analysis for Westpac Banking

It will come as no surprise then, to learn that the consensus price target is largely unchanged at AU$28.57. 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 Westpac Banking, with the most bullish analyst valuing it at AU$36.00 and the most bearish at AU$26.50 per share. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Westpac Banking's growth to accelerate, with the forecast 6.1% annualised growth to the end of 2025 ranking favourably alongside historical growth of 2.7% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 4.4% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Westpac Banking is expected to grow much faster than its 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 major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at AU$28.57, with the latest estimates not enough to have an impact on their price targets.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for Westpac Banking going out to 2027, 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 2 warning signs for Westpac Banking (1 doesn't sit too well with us!) 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.

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