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It's been a sad week for Wise plc (LON:WISE), who've watched their investment drop 16% to UK£7.14 in the week since the company reported its annual result. It looks like a credible result overall - although revenues of UK£1.4b were in line with what the analysts predicted, Wise surprised by delivering a statutory profit of UK£0.34 per share, a notable 14% above expectations. 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.
View our latest analysis for Wise
After the latest results, the 14 analysts covering Wise are now predicting revenues of UK£1.59b in 2025. If met, this would reflect a meaningful 13% improvement in revenue compared to the last 12 months. Statutory earnings per share are expected to dip 8.4% to UK£0.32 in the same period. Before this earnings report, the analysts had been forecasting revenues of UK£1.63b and earnings per share (EPS) of UK£0.32 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 average price target was steady at UK£9.80even though revenue estimates declined; likely suggesting the analysts place a higher value on earnings. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Wise analyst has a price target of UK£12.50 per share, while the most pessimistic values it at UK£5.60. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.
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 Wise's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 13% growth on an annualised basis. This is compared to a historical growth rate of 34% over the past five years. Compare this with other companies in the same industry, which are forecast to see a revenue decline of 13% annually. So it's clear that despite the slowdown in growth, Wise is still expected to grow meaningfully faster than the wider industry.