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Last week, you might have seen that Sylogist Ltd. (TSE:SYZ) released its yearly result to the market. The early response was not positive, with shares down 8.5% to CA$8.20 in the past week. Revenues of CA$66m arrived in line with expectations, although statutory losses per share were CA$0.03, an impressive 40% smaller than what broker models predicted. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Check out our latest analysis for Sylogist
Taking into account the latest results, the current consensus from Sylogist's six analysts is for revenues of CA$67.7m in 2025. This would reflect a satisfactory 3.2% increase on its revenue over the past 12 months. Earnings are expected to improve, with Sylogist forecast to report a statutory profit of CA$0.11 per share. Before this earnings report, the analysts had been forecasting revenues of CA$69.6m and earnings per share (EPS) of CA$0.11 in 2025. The consensus seems maybe a little more pessimistic, trimming their revenue forecasts after the latest results even though there was no change to its EPS estimates.
The consensus has reconfirmed its price target of CA$13.17, showing that the analysts don't expect weaker revenue expectations next year to have a material impact on Sylogist's market value. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Sylogist analyst has a price target of CA$14.00 per share, while the most pessimistic values it at CA$12.50. This is a very narrow spread of estimates, implying either that Sylogist is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that Sylogist's revenue growth is expected to slow, with the forecast 3.2% annualised growth rate until the end of 2025 being well below the historical 15% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 14% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Sylogist.