Yahoo Finance Héroux-Devtek Inc. Just Beat EPS By 36%: Here's What Analysts Think Will Happen Next
As you might know, Héroux-Devtek Inc. (TSE:HRX) just kicked off its latest yearly results with some very strong numbers. It was overall a positive result, with revenues beating expectations by 2.2% to hit CA$630m. Héroux-Devtek also reported a statutory profit of CA$1.13, which was an impressive 36% above what the analysts had forecast. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
See our latest analysis for Héroux-Devtek
Taking into account the latest results, the most recent consensus for Héroux-Devtek from four analysts is for revenues of CA$681.7m in 2025. If met, it would imply a solid 8.2% increase on its revenue over the past 12 months. Per-share earnings are expected to swell 17% to CA$1.34. Yet prior to the latest earnings, the analysts had been anticipated revenues of CA$651.3m and earnings per share (EPS) of CA$1.10 in 2025. There's been a pretty noticeable increase in sentiment, with the analysts upgrading revenues and making a very substantial lift in earnings per share in particular.
It will come as no surprise to learn that the analysts have increased their price target for Héroux-Devtek 24% to CA$30.25on the back of these upgrades. 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 Héroux-Devtek analyst has a price target of CA$37.00 per share, while the most pessimistic values it at CA$27.00. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.
Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Héroux-Devtek's growth to accelerate, with the forecast 8.2% annualised growth to the end of 2025 ranking favourably alongside historical growth of 0.4% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 8.0% annually. Héroux-Devtek is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.
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 Héroux-Devtek following these results. They also upgraded their revenue forecasts, although the latest estimates suggest that Héroux-Devtek will grow in line with the overall industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.
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. At Simply Wall St, we have a full range of analyst estimates for Héroux-Devtek going out to 2027, and you can see them free on our platform here..
Even so, be aware that Héroux-Devtek is showing 1 warning sign in our investment analysis , you should know about...
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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.
