Exco Technologies Limited Beat Analyst Estimates: See What The Consensus Is Forecasting For Next Year

Exco Technologies Limited (TSE:XTC) shares fell 3.4% to CA$7.50 in the week since its latest quarterly results. Exco Technologies missed revenue estimates by 3.1%, with sales of CA$120m, although statutory earnings per share (EPS) of CA$0.20 beat expectations, coming in 8.1% ahead of analyst estimates. This is an important time for investors, as they can track a company's performance in its report, look at what top analysts 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 analysts have changed their mind on Exco Technologies after the latest results.

Check out our latest analysis for Exco Technologies

Following last week's earnings report, Exco Technologies's five analysts are forecasting 2020 revenues to be CA$490.7m, approximately in line with the last 12 months. Statutory earnings per share are expected to ascend 11% to CA$0.84. Before this earnings report, analysts had been forecasting revenues of CA$496.3m and earnings per share (EPS) of CA$0.84 in 2020. 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.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at CA$8.70. 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 Exco Technologies analyst has a price target of CA$10.00 per share, while the most pessimistic values it at CA$7.00. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

Further, we can compare these estimates to past performance, and see how Exco Technologies forecasts compare to the wider market's forecast performance. We would highlight that Exco Technologies's revenue growth is expected to slow, with forecast 1.0% increase next year well below the historical 2.2%p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the market, which are in aggregate expected to see revenue growth of 14% next year. So it's pretty clear that, while revenue growth is expected to slow down, analysts still expect the wider market to grow faster than Exco Technologies.

The Bottom Line

The most obvious conclusion from these results is that there's been no major change in the business' prospects in recent times, with analysts holding earnings per share steady, in line with previous estimates. On the plus side, there were no major changes to revenue estimates; although analyst forecasts imply revenues will perform worse than the wider market. The consensus price target held steady at CA$8.70, with the latest estimates not enough to have an impact on analysts' estimated valuations.

Still, the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for Exco Technologies going out to 2023, and you can see them free on our platform here.

We also provide an overview of the Exco Technologies Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned.

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