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Last week saw the newest annual earnings release from Kinaxis Inc. (TSE:KXS), an important milestone in the company's journey to build a stronger business. Results were overall in line with expectations, with the company breaking even at the statutory earnings per share (EPS) level on US$483m in revenue. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Kinaxis after the latest results.
View our latest analysis for Kinaxis
Following the latest results, Kinaxis' ten analysts are now forecasting revenues of US$543.2m in 2025. This would be a notable 12% improvement in revenue compared to the last 12 months. Per-share earnings are expected to soar 90,216% to US$1.80. In the lead-up to this report, the analysts had been modelling revenues of US$560.3m and earnings per share (EPS) of US$1.69 in 2025. So it's pretty clear that while sentiment around revenues has declined following the latest results, the analysts are now more bullish on the company's earnings power.
The consensus has made no major changes to the price target of CA$197, suggesting the forecast improvement in earnings is expected to offset the decline in revenues next year. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Kinaxis, with the most bullish analyst valuing it at CA$226 and the most bearish at CA$162 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Kinaxis shareholders.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Kinaxis' past performance and to peers in the same industry. It's pretty clear that there is an expectation that Kinaxis' revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 12% growth on an annualised basis. This is compared to a historical growth rate of 20% 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 15% per year. Factoring in the forecast slowdown in growth, it seems obvious that Kinaxis is also expected to grow slower than other industry participants.