Earnings Update: Stantec Inc. (TSE:STN) Just Reported Its Annual Results And Analysts Are Updating Their Forecasts

It's been a pretty great week for Stantec Inc. (TSE:STN) shareholders, with its shares surging 12% to CA$122 in the week since its latest annual results. It was a credible result overall, with revenues of CA$5.9b and statutory earnings per share of CA$3.17 both in line with analyst estimates, showing that Stantec is executing in line with expectations. 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 Stantec

Taking into account the latest results, the most recent consensus for Stantec from twelve analysts is for revenues of CA$6.41b in 2025. If met, it would imply a notable 9.2% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to soar 47% to CA$4.67. Yet prior to the latest earnings, the analysts had been anticipated revenues of CA$6.34b and earnings per share (EPS) of CA$4.45 in 2025. 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$141, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Stantec analyst has a price target of CA$148 per share, while the most pessimistic values it at CA$129. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

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. We can infer from the latest estimates that forecasts expect a continuation of Stantec'shistorical trends, as the 9.2% annualised revenue growth to the end of 2025 is roughly in line with the 10% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 7.7% annually. So although Stantec is expected to maintain its revenue growth rate, it's only growing at about the rate of 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 Stantec's earnings potential next year. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target held steady at CA$141, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Stantec going out to 2027, and you can see them free on our platform here..

It might also be worth considering whether Stantec's debt load is appropriate, using our debt analysis tools on the Simply Wall St platform, 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.