Analysts Are Updating Their Stella-Jones Inc. (TSE:SJ) Estimates After Its Third-Quarter Results

It's been a good week for Stella-Jones Inc. (TSE:SJ) shareholders, because the company has just released its latest third-quarter results, and the shares gained 4.0% to CA$81.86. The result was positive overall - although revenues of CA$958m were in line with what the analysts predicted, Stella-Jones surprised by delivering a statutory profit of CA$1.59 per share, modestly greater than expected. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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Taking into account the latest results, the current consensus from Stella-Jones' six analysts is for revenues of CA$3.75b in 2026. This would reflect a credible 7.4% increase on its revenue over the past 12 months. Statutory earnings per share are forecast to reduce 3.4% to CA$5.96 in the same period. In the lead-up to this report, the analysts had been modelling revenues of CA$3.73b and earnings per share (EPS) of CA$6.06 in 2026. 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.

See our latest analysis for Stella-Jones

There were no changes to revenue or earnings estimates or the price target of CA$89.63, suggesting that the company has met expectations in its recent result. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Stella-Jones analyst has a price target of CA$96.00 per share, while the most pessimistic values it at CA$75.00. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We can infer from the latest estimates that forecasts expect a continuation of Stella-Jones'historical trends, as the 5.9% annualised revenue growth to the end of 2026 is roughly in line with the 7.1% annual growth over the past five years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 5.7% per year. So although Stella-Jones is expected to maintain its revenue growth rate, it's only growing at about the rate of the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at CA$89.63, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Stella-Jones going out to 2027, and you can see them free on our platform here..

Plus, you should also learn about the 2 warning signs we've spotted with Stella-Jones (including 1 which is significant) .

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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.