Results: Colliers International Group Inc. Beat Earnings Expectations And Analysts Now Have New Forecasts

Colliers International Group Inc. (TSE:CIGI) just released its latest third-quarter results and things are looking bullish. It was overall a positive result, with revenues beating expectations by 7.2% to hit US$1.5b. Colliers International Group also reported a statutory profit of US$0.82, which was an impressive 44% above what the analysts had forecast. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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Taking into account the latest results, the consensus forecast from Colliers International Group's eleven analysts is for revenues of US$5.95b in 2026. This reflects a notable 9.2% improvement in revenue compared to the last 12 months. Statutory earnings per share are forecast to decrease 4.1% to US$2.21 in the same period. Before this earnings report, the analysts had been forecasting revenues of US$5.92b and earnings per share (EPS) of US$3.73 in 2026. So there's definitely been a decline in sentiment after the latest results, noting the large cut to new EPS forecasts.

See our latest analysis for Colliers International Group

Despite cutting their earnings forecasts,the analysts have lifted their price target 21% to CA$246, suggesting that these impacts are not expected to weigh on the stock's value in the long term. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Colliers International Group analyst has a price target of CA$259 per share, while the most pessimistic values it at CA$232. This is a very narrow spread of estimates, implying either that Colliers International Group is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

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 would highlight that Colliers International Group's revenue growth is expected to slow, with the forecast 7.3% annualised growth rate until the end of 2026 being well below the historical 10.0% p.a. growth over the last five years. Compare this to the 29 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 6.2% per year. Factoring in the forecast slowdown in growth, it looks like Colliers International Group is forecast to grow at about the same rate as the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as 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.

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. We have forecasts for Colliers International Group going out to 2027, 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.