Fiera Capital Corporation Just Beat EPS By 37%: Here's What Analysts Think Will Happen Next

Fiera Capital Corporation (TSE:FSZ) just released its annual report and things are looking bullish. It was overall a positive result, with revenues beating expectations by 6.0% to hit CA$750m. Fiera Capital also reported a statutory profit of CA$0.68, which was an impressive 37% above what the analysts had forecast. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Fiera Capital after the latest results.

See our latest analysis for Fiera Capital

Following last week's earnings report, Fiera Capital's five analysts are forecasting 2022 revenues to be CA$737.7m, approximately in line with the last 12 months. Statutory earnings per share are expected to sink 13% to CA$0.63 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of CA$733.8m and earnings per share (EPS) of CA$0.67 in 2022. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a minor downgrade to their earnings per share forecasts.

It might be a surprise to learn that the consensus price target was broadly unchanged at CA$11.50, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Fiera Capital, with the most bullish analyst valuing it at CA$12.50 and the most bearish at CA$11.00 per share. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that sales are expected to reverse, with a forecast 1.6% annualised revenue decline to the end of 2022. That is a notable change from historical growth of 14% over the last five years. Yet aggregate analyst estimates for other companies in the industry suggest that industry revenues are forecast to decline 52% per year. The forecasts do look comparatively optimistic for Fiera Capital, since they're expecting it to shrink slower than the industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Fortunately, they also reconfirmed their revenue estimates, suggesting sales are tracking in line with expectations. Their estimates also suggest that Fiera Capital's revenues are expected to perform better than 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.

With that in mind, we wouldn't be too quick to come to a conclusion on Fiera Capital. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Fiera Capital going out to 2023, and you can see them free on our platform here..

Plus, you should also learn about the 2 warning signs we've spotted with Fiera Capital .

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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.