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The first-quarter results for Enghouse Systems Limited (TSE:ENGH) were released last week, making it a good time to revisit its performance. Enghouse Systems reported CA$124m in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of CA$0.40 beat expectations, being 9.6% higher than what the analysts expected. 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 thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
See our latest analysis for Enghouse Systems
Taking into account the latest results, Enghouse Systems' three analysts currently expect revenues in 2025 to be CA$515.6m, approximately in line with the last 12 months. Statutory per-share earnings are expected to be CA$1.53, roughly flat on the last 12 months. Before this earnings report, the analysts had been forecasting revenues of CA$520.3m and earnings per share (EPS) of CA$1.53 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
The analysts reconfirmed their price target of CA$31.67, showing that the business is executing well and in line with expectations. 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. Currently, the most bullish analyst values Enghouse Systems at CA$38.00 per share, while the most bearish prices it at CA$27.00. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.
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 clear from the latest estimates that Enghouse Systems' rate of growth is expected to accelerate meaningfully, with the forecast 2.5% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 0.5% p.a. 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 14% per year. It seems obvious that, while the future growth outlook is brighter than the recent past, Enghouse Systems is expected to grow slower than the wider industry.