Broker Revenue Forecasts For Manulife Financial Corporation (TSE:MFC) Are Surging Higher

Manulife Financial Corporation (TSE:MFC) shareholders will have a reason to smile today, with the analysts making substantial upgrades to next year's forecasts. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects.

After the upgrade, the eleven analysts covering Manulife Financial are now predicting revenues of CA$72b in 2025. If met, this would reflect a sizeable 139% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to soar 40% to CA$4.09. Before this latest update, the analysts had been forecasting revenues of CA$56b and earnings per share (EPS) of CA$4.09 in 2025. It seems analyst sentiment has certainly become more bullish on revenues, even though they haven't changed their view on earnings per share.

View our latest analysis for Manulife Financial

It may not be a surprise to see that the analysts have reconfirmed their price target of CA$46.57, implying that the uplift in sales is not expected to greatly contribute to Manulife Financial's valuation in the near term.

Of course, another way to look at these forecasts is to place them into context against the industry itself. One thing stands out from these estimates, which is that Manulife Financial is forecast to grow faster in the future than it has in the past, with revenues expected to display 101% annualised growth until the end of 2025. If achieved, this would be a much better result than the 26% annual decline over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 6.8% per year. So it looks like Manulife Financial is expected to grow faster than its competitors, at least for a while.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with analysts reconfirming that earnings per share are expected to continue performing in line with their prior expectations. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. Seeing the dramatic upgrade to next year's forecasts, it might be time to take another look at Manulife Financial.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. At Simply Wall St, we have a full range of analyst estimates for Manulife Financial going out to 2026, and you can see them free on our 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.