Analyst Estimates: Here's What Brokers Think Of Boyd Group Services Inc. (TSE:BYD) After Its Full-Year Report

Boyd Group Services Inc. (TSE:BYD) shareholders are probably feeling a little disappointed, since its shares fell 8.5% to CA$287 in the week after its latest full-year results. Revenues of US$2.9b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at US$4.04, missing estimates by 4.4%. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

View our latest analysis for Boyd Group Services

After the latest results, the 14 analysts covering Boyd Group Services are now predicting revenues of US$3.31b in 2024. If met, this would reflect a solid 12% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to surge 21% to US$4.87. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$3.34b and earnings per share (EPS) of US$6.13 in 2024. So there's definitely been a decline in sentiment after the latest results, noting the large cut to new EPS forecasts.

The consensus price target held steady at CA$323, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Boyd Group Services at CA$374 per share, while the most bearish prices it at CA$268. 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.

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. The period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 12% growth on an annualised basis. That is in line with its 15% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 3.1% annually. So it's pretty clear that Boyd Group Services is forecast to grow substantially faster than its industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Boyd Group Services. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at CA$323, 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 Boyd Group Services. Long-term earnings power is much more important than next year's profits. We have forecasts for Boyd Group Services 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 Boyd Group Services that we have uncovered.

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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.