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Boyd Group Services Inc. (TSE:BYD) came out with its quarterly results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. It looks like a pretty bad result, all things considered. Although revenues of US$752m were in line with analyst predictions, statutory earnings fell badly short, missing estimates by 72% to hit US$0.13 per share. 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.
Check out our latest analysis for Boyd Group Services
Taking into account the latest results, the consensus forecast from Boyd Group Services' twelve analysts is for revenues of US$3.34b in 2025. This reflects a notable 9.2% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to bounce 150% to US$4.79. Before this earnings report, the analysts had been forecasting revenues of US$3.47b and earnings per share (EPS) of US$5.34 in 2025. The analysts seem less optimistic after the recent results, reducing their revenue forecasts and making a real cut to earnings per share numbers.
The consensus price target fell 5.7% to CA$267, with the weaker earnings outlook clearly leading valuation estimates. 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 Boyd Group Services, with the most bullish analyst valuing it at CA$322 and the most bearish at CA$209 per share. 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. We would highlight that Boyd Group Services' revenue growth is expected to slow, with the forecast 7.3% annualised growth rate until the end of 2025 being well below the historical 16% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 3.0% per year. So it's pretty clear that, while Boyd Group Services' revenue growth is expected to slow, it's still expected to grow faster than the industry itself.