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Earnings Miss: Colliers International Group Inc. Missed EPS By 15% And Analysts Are Revising Their Forecasts
As you might know, Colliers International Group Inc. (TSE:CIGI) recently reported its quarterly numbers. Revenues were in line with forecasts, at US$1.2b, although statutory earnings per share came in 15% below what the analysts expected, at US$0.73 per share. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Colliers International Group after the latest results.
View our latest analysis for Colliers International Group
Taking into account the latest results, the current consensus from Colliers International Group's eight analysts is for revenues of US$5.31b in 2025. This would reflect a decent 17% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to jump 32% to US$4.04. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$5.33b and earnings per share (EPS) of US$4.34 in 2025. 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.
Althoughthe analysts have revised their earnings forecasts for next year, they've also lifted the consensus price target 16% to CA$196, suggesting the revised estimates are not indicative of a weaker long-term future for the business. 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 Colliers International Group, with the most bullish analyst valuing it at CA$251 and the most bearish at CA$75.73 per share. So we wouldn't be assigning too much credibility to analyst price targets in this case, because there are clearly some widely different views on what kind of performance this business can generate. As a result it might not be a great idea to make decisions based on the consensus price target, which is after all just an average of this wide range of estimates.
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 analysts are definitely expecting Colliers International Group's growth to accelerate, with the forecast 13% annualised growth to the end of 2025 ranking favourably alongside historical growth of 11% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 5.8% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Colliers International Group to grow faster than the wider industry.
The Bottom Line
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Colliers International Group. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Colliers International Group analysts - going out to 2026, and you can see them free on our platform here.
Even so, be aware that Colliers International Group is showing 3 warning signs in our investment analysis , and 1 of those 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.
About TSX:CIGI
Colliers International Group
Provides commercial real estate professional and investment management services to corporate and institutional clients in the Americas, Europe, the Middle East, Africa, and the Asia Pacific.
Solid track record low.