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Investors in Chorus Limited (NZSE:CNU) had a good week, as its shares rose 6.1% to close at NZ$8.65 following the release of its annual results. Revenues came in at NZ$1.0b, in line with estimates, while Chorus reported a statutory loss of NZ$0.02 per share, well short of prior analyst forecasts for a profit. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
See our latest analysis for Chorus
Following last week's earnings report, Chorus' seven analysts are forecasting 2025 revenues to be NZ$1.03b, approximately in line with the last 12 months. Earnings are expected to improve, with Chorus forecast to report a statutory profit of NZ$0.063 per share. Before this earnings report, the analysts had been forecasting revenues of NZ$1.02b and earnings per share (EPS) of NZ$0.067 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.
Despite cutting their earnings forecasts,the analysts have lifted their price target 5.4% to NZ$7.78, suggesting that these impacts are not expected to weigh on the stock's value in the long term. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Chorus, with the most bullish analyst valuing it at NZ$8.40 and the most bearish at NZ$5.32 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Chorus shareholders.
Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Chorus' growth to accelerate, with the forecast 1.7% annualised growth to the end of 2025 ranking favourably alongside historical growth of 0.8% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 3.4% per year. So it's clear that despite the acceleration in growth, Chorus is expected to grow meaningfully slower than the industry average.