Investors in Western Alliance Bancorporation (NYSE:WAL) had a good week, as its shares rose 5.3% to close at US$68.70 following the release of its quarterly results. It was a credible result overall, with revenues of US$778m and statutory earnings per share of US$1.79 both in line with analyst estimates, showing that Western Alliance Bancorporation is executing in line with expectations. 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 Western Alliance Bancorporation from ten analysts is for revenues of US$3.39b in 2025. If met, it would imply a meaningful 11% increase on its revenue over the past 12 months. Per-share earnings are expected to climb 18% to US$8.64. In the lead-up to this report, the analysts had been modelling revenues of US$3.38b and earnings per share (EPS) of US$8.70 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.

With no major changes to earnings forecasts, the consensus price target fell 8.6% to US$92.36, suggesting that the analysts might have previously been hoping for an earnings upgrade. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Western Alliance Bancorporation at US$112 per share, while the most bearish prices it at US$80.00. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

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. It's pretty clear that there is an expectation that Western Alliance Bancorporation's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 15% growth on an annualised basis. This is compared to a historical growth rate of 21% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 7.1% annually. Even after the forecast slowdown in growth, it seems obvious that Western Alliance Bancorporation is also expected to grow faster than the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Western Alliance Bancorporation going out to 2027, and you can see them free on our platform here.

You can also view our analysis of Western Alliance Bancorporation's balance sheet, and whether we think Western Alliance Bancorporation is carrying too much debt, for free on our platform here.

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.