Yahoo Finance Wise plc Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions
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.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Sadly they also cut their revenue estimates, although at least the company is expected to perform a bit better than the wider industry. Still, earnings per share are more important to value creation for shareholders. The consensus price target held steady at UK£9.80, with the latest estimates not enough to have an impact on their price targets.
With that in mind, we wouldn't be too quick to come to a conclusion on Wise. Long-term earnings power is much more important than next year's profits. We have forecasts for Wise going out to 2027, and you can see them free on our platform here.
We also provide an overview of the Wise Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.
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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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
