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As you might know, GDI Integrated Facility Services Inc. (TSE:GDI) recently reported its quarterly numbers. Results look mixed - while revenue fell marginally short of analyst estimates at CA$640m, statutory earnings beat expectations 9.8%, with GDI Integrated Facility Services reporting profits of CA$0.28 per share. 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 gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
See our latest analysis for GDI Integrated Facility Services
Taking into account the latest results, the consensus forecast from GDI Integrated Facility Services' five analysts is for revenues of CA$2.67b in 2025. This reflects a credible 4.7% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to jump 119% to CA$1.40. Yet prior to the latest earnings, the analysts had been anticipated revenues of CA$2.68b and earnings per share (EPS) of CA$1.27 in 2025. Although the revenue estimates have not really changed, we can see there's been a decent improvement in earnings per share expectations, suggesting that the analysts have become more bullish after the latest result.
The consensus price target was unchanged at CA$42.10, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. 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 GDI Integrated Facility Services, with the most bullish analyst valuing it at CA$50.00 and the most bearish at CA$39.00 per share. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting GDI Integrated Facility Services is an easy business to forecast or the the analysts are all using similar assumptions.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's pretty clear that there is an expectation that GDI Integrated Facility Services' revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 3.8% growth on an annualised basis. This is compared to a historical growth rate of 16% 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 2.6% annually. So it's pretty clear that, while GDI Integrated Facility Services' revenue growth is expected to slow, it's still expected to grow faster than the industry itself.