Yahoo Finance Badger Infrastructure Solutions Ltd. Just Missed EPS By 19%: Here's What Analysts Think Will Happen Next
The analysts might have been a bit too bullish on Badger Infrastructure Solutions Ltd. (TSE:BDGI), given that the company fell short of expectations when it released its annual results last week. Badger Infrastructure Solutions missed earnings this time around, with US$684m revenue coming in 2.9% below what the analysts had modelled. Statutory earnings per share (EPS) of US$1.24 also fell short of expectations by 19%. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
See our latest analysis for Badger Infrastructure Solutions
Following the latest results, Badger Infrastructure Solutions' eight analysts are now forecasting revenues of US$763.3m in 2024. This would be a notable 12% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to shoot up 62% to US$1.97. Before this earnings report, the analysts had been forecasting revenues of US$759.0m and earnings per share (EPS) of US$1.81 in 2024. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.
The consensus price target was unchanged at CA$49.83, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. 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. Currently, the most bullish analyst values Badger Infrastructure Solutions at CA$60.00 per share, while the most bearish prices it at CA$42.00. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's clear from the latest estimates that Badger Infrastructure Solutions' rate of growth is expected to accelerate meaningfully, with the forecast 12% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 7.0% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 1.8% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Badger Infrastructure Solutions to grow faster than the wider industry.
The Bottom Line
The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Badger Infrastructure Solutions following these results. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at CA$49.83, with the latest estimates not enough to have an impact on their price targets.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for Badger Infrastructure Solutions going out to 2025, and you can see them free on our platform here.
That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with Badger Infrastructure Solutions , and understanding this should be part of your investment process.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
