Earnings Update: GQG Partners Inc. (ASX:GQG) Just Reported And Analysts Are Boosting Their Estimates

It's been a good week for GQG Partners Inc. (ASX:GQG) shareholders, because the company has just released its latest annual results, and the shares gained 2.8% to AU$2.20. The result was positive overall - although revenues of US$518m were in line with what the analysts predicted, GQG Partners surprised by delivering a statutory profit of US$0.096 per share, modestly greater than expected. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

View our latest analysis for GQG Partners

Taking into account the latest results, the most recent consensus for GQG Partners from eight analysts is for revenues of US$664.9m in 2024. If met, it would imply a sizeable 28% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to bounce 28% to US$0.12. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$621.8m and earnings per share (EPS) of US$0.12 in 2024. It looks like there's been a modest increase in sentiment following the latest results, withthe analysts becoming a bit more optimistic in their predictions for both revenues and earnings.

With these upgrades, we're not surprised to see that the analysts have lifted their price target 5.6% to AU$2.42per share. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values GQG Partners at AU$2.69 per share, while the most bearish prices it at AU$2.14. 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.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's clear from the latest estimates that GQG Partners' rate of growth is expected to accelerate meaningfully, with the forecast 28% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 20% p.a. over the past three years. Compare this with other companies in the same industry, which are forecast to grow their revenue 3.7% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect GQG Partners to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around GQG Partners' earnings potential next year. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

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 GQG Partners going out to 2026, and you can see them free on our platform here..

Before you take the next step you should know about the 1 warning sign for GQG Partners that we have uncovered.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.