In This Article:
The analysts might have been a bit too bullish on Fiera Capital Corporation (TSE:FSZ), given that the company fell short of expectations when it released its full-year results last week. It wasn't a great result overall - while revenue fell marginally short of analyst estimates at CA$689m, statutory earnings missed forecasts by an incredible 52%, coming in at just CA$0.23 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.
View our latest analysis for Fiera Capital
Taking into account the latest results, the current consensus from Fiera Capital's five analysts is for revenues of CA$716.9m in 2025. This would reflect a reasonable 4.1% increase on its revenue over the past 12 months. Per-share earnings are expected to soar 116% to CA$0.50. Yet prior to the latest earnings, the analysts had been anticipated revenues of CA$727.0m and earnings per share (EPS) of CA$0.56 in 2025. The analysts seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a substantial drop in EPS estimates.
The average price target fell 17% to CA$7.46, with reduced earnings forecasts clearly tied to a lower valuation estimate. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Fiera Capital, with the most bullish analyst valuing it at CA$8.75 and the most bearish at CA$6.50 per share. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Fiera Capital's past performance and to peers in the same industry. The analysts are definitely expecting Fiera Capital's growth to accelerate, with the forecast 4.1% annualised growth to the end of 2025 ranking favourably alongside historical growth of 0.01% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to see a revenue decline of 12% annually. It seems obvious that as part of the brighter growth outlook, Fiera Capital is expected to grow faster than the wider industry.