Shaw Communications Inc. Just Recorded A 17% EPS Beat: Here's What Analysts Are Forecasting Next

Shaw Communications Inc. (TSE:SJR.B) just released its third-quarter report and things are looking bullish. Shaw Communications beat earnings, with revenues hitting CA$1.3b, ahead of expectations, and statutory earnings per share outperforming analyst reckonings by a solid 17%. 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 Shaw Communications after the latest results.

Check out our latest analysis for Shaw Communications

Taking into account the latest results, the consensus forecast from Shaw Communications' twelve analysts is for revenues of CA$5.54b in 2021, which would reflect a satisfactory 2.4% improvement in sales compared to the last 12 months. Statutory earnings per share are predicted to rise 3.3% to CA$1.34. Yet prior to the latest earnings, the analysts had been anticipated revenues of CA$5.48b and earnings per share (EPS) of CA$1.32 in 2021. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

The analysts reconfirmed their price target of CA$26.54, showing that the business is executing well and in line with expectations. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Shaw Communications analyst has a price target of CA$32.00 per share, while the most pessimistic values it at CA$19.00. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's pretty clear that there is an expectation that Shaw Communications' revenue growth will slow down substantially, with revenues next year expected to grow 2.4%, compared to a historical growth rate of 4.4% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 2.2% next year. Factoring in the forecast slowdown in growth, it looks like Shaw Communications is forecast to grow at about the same rate as 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. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Shaw Communications going out to 2022, and you can see them free on our platform here.

Plus, you should also learn about the 3 warning signs we've spotted with Shaw Communications .

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This article by Simply Wall St is general in nature. 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.
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