Highwood Asset Management Ltd. Just Recorded A 87% EPS Beat: Here's What Analysts Are Forecasting Next

A week ago, Highwood Asset Management Ltd. (CVE:HAM) came out with a strong set of second-quarter numbers that could potentially lead to a re-rate of the stock. Statutory revenue of CA$37m and earnings of CA$0.89 both blasted past expectations, beating expectations by 37% and 87%, respectively, ahead of expectations. Earnings are an important time for investors, as they can track a company's performance, look at what the analyst is forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analyst is expecting for next year.

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After the latest results, the sole analyst covering Highwood Asset Management are now predicting revenues of CA$136.4m in 2025. If met, this would reflect a sizeable 38% improvement in revenue compared to the last 12 months. Statutory earnings per share are expected to dive 35% to CA$1.44 in the same period. Before this earnings report, the analyst had been forecasting revenues of CA$117.2m and earnings per share (EPS) of CA$1.01 in 2025. So we can see there's been a pretty clear increase in sentiment following the latest results, with both revenues and earnings per share receiving a decent lift in the latest estimates.

See our latest analysis for Highwood Asset Management

Despite these upgrades,the analyst has not made any major changes to their price target of CA$7.58, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth.

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 analyst is definitely expecting Highwood Asset Management's growth to accelerate, with the forecast 92% annualised growth to the end of 2025 ranking favourably alongside historical growth of 47% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 3.3% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Highwood Asset Management is expected to grow much faster than its industry.

The Bottom Line

The most important thing here is that the analyst upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Highwood Asset Management following these results. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster 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 Highwood Asset Management. Long-term earnings power is much more important than next year's profits. We have analyst estimates for Highwood Asset Management going out as far as 2026, and you can see them free on our platform here.

You still need to take note of risks, for example - Highwood Asset Management has 4 warning signs (and 1 which can't be ignored) we think you should know about.

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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.