Transcontinental Inc. Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year

Shareholders of Transcontinental Inc. (TSE:TCL.A) will be pleased this week, given that the stock price is up 11% to CA$18.71 following its latest first-quarter results. Revenues were CA$643m, approximately in line with whatthe analysts expected, although statutory earnings per share (EPS) crushed expectations, coming in at CA$0.66, an impressive 182% ahead of estimates. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Transcontinental after the latest results.

Check out our latest analysis for Transcontinental

Following last week's earnings report, Transcontinental's seven analysts are forecasting 2025 revenues to be CA$2.73b, approximately in line with the last 12 months. Per-share earnings are expected to swell 10% to CA$2.15. In the lead-up to this report, the analysts had been modelling revenues of CA$2.74b and earnings per share (EPS) of CA$1.88 in 2025. Although the revenue estimates have not really changed, we can see there's been a solid gain to earnings per share expectations, suggesting that the analysts have become more bullish after the latest result.

The consensus price target was unchanged at CA$22.57, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Transcontinental at CA$27.00 per share, while the most bearish prices it at CA$20.00. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

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. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 2.0% by the end of 2025. This indicates a significant reduction from annual growth of 1.6% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 3.7% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Transcontinental is expected to lag the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Transcontinental's earnings potential next year. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Transcontinental's revenue is expected to perform worse than the wider industry. The consensus price target held steady at CA$22.57, with the latest estimates not enough to have an impact on their price targets.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Transcontinental going out to 2027, and you can see them free on our platform here..

It is also worth noting that we have found 1 warning sign for Transcontinental that you need to take into consideration.

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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.