Results: Mainstreet Equity Corp. Exceeded Expectations And The Consensus Has Updated Its Estimates

Mainstreet Equity Corp. (TSE:MEQ) just released its latest quarterly results and things are looking bullish. It was overall a positive result, with revenues beating expectations by 2.9% to hit CA$58m. Mainstreet Equity also reported a statutory profit of CA$7.36, which was an impressive 404% 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Check out our latest analysis for Mainstreet Equity

After the latest results, the dual analysts covering Mainstreet Equity are now predicting revenues of CA$244.2m in 2024. If met, this would reflect a decent 11% improvement in revenue compared to the last 12 months. Statutory earnings per share are forecast to plunge 29% to CA$12.46 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of CA$235.7m and earnings per share (EPS) of CA$6.41 in 2024. So it seems there's been a definite increase in optimism about Mainstreet Equity's future following the latest results, with a considerable lift to the earnings per share forecasts in particular.

Despite these upgrades,the analysts have not made any major changes to their price target of CA$183, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth.

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 Mainstreet Equity's growth to accelerate, with the forecast 15% annualised growth to the end of 2024 ranking favourably alongside historical growth of 11% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 5.6% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Mainstreet Equity is expected to grow much faster than its industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Mainstreet Equity following these results. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. The consensus price target held steady at CA$183, with the latest estimates not enough to have an impact on their price targets.

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 analyst estimates for Mainstreet Equity going out as far as 2025, and you can see them free on our platform here.

Plus, you should also learn about the 3 warning signs we've spotted with Mainstreet Equity (including 2 which are 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.