The Bank of N.T. Butterfield & Son Limited (NYSE:NTB) just released its latest quarterly results and things are looking bullish. Bank of N.T. Butterfield & Son beat earnings, with revenues hitting US$148m, ahead of expectations, and statutory earnings per share outperforming analyst reckonings by a solid 12%. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

We've discovered 1 warning sign about Bank of N.T. Butterfield & Son. View them for free.NYSE:NTB Earnings and Revenue Growth April 26th 2025

Taking into account the latest results, Bank of N.T. Butterfield & Son's four analysts currently expect revenues in 2025 to be US$583.1m, approximately in line with the last 12 months. Statutory earnings per share are expected to shrink 4.3% to US$4.91 in the same period. In the lead-up to this report, the analysts had been modelling revenues of US$573.6m and earnings per share (EPS) of US$4.59 in 2025. So the consensus seems to have become somewhat more optimistic on Bank of N.T. Butterfield & Son's earnings potential following these results.

See our latest analysis for Bank of N.T. Butterfield & Son

There's been no major changes to the consensus price target of US$46.00, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. 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. The most optimistic Bank of N.T. Butterfield & Son analyst has a price target of US$48.00 per share, while the most pessimistic values it at US$44.00. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Bank of N.T. Butterfield & Son is an easy business to forecast or the the analysts are all using similar assumptions.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 0.5% by the end of 2025. This indicates a significant reduction from annual growth of 3.8% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 7.1% annually for the foreseeable future. It's pretty clear that Bank of N.T. Butterfield & Son's revenues are expected to perform substantially worse than the wider industry.

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The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Bank of N.T. Butterfield & Son's 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. The consensus price target held steady at US$46.00, 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 estimates - from multiple Bank of N.T. Butterfield & Son analysts - going out to 2027, and you can see them free on our platform here.

You still need to take note of risks, for example - Bank of N.T. Butterfield & Son has  1 warning sign  we think 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.

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