Cargojet Inc. Just Recorded A 76% EPS Beat: Here's What Analysts Are Forecasting Next

Cargojet Inc. (TSE:CJT) just released its full-year report and things are looking bullish. The company beat forecasts, with revenue of CA$1.0b, some 2.1% above estimates, and statutory earnings per share (EPS) coming in at CA$6.68, 76% ahead of expectations. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

See our latest analysis for Cargojet

Taking into account the latest results, the most recent consensus for Cargojet from eleven analysts is for revenues of CA$1.10b in 2025. If met, it would imply a decent 10% increase on its revenue over the past 12 months. Statutory earnings per share are expected to decline 18% to CA$5.60 in the same period. In the lead-up to this report, the analysts had been modelling revenues of CA$1.05b and earnings per share (EPS) of CA$6.20 in 2025. So it's pretty clear consensus is mixed on Cargojet after the latest results; whilethe analysts lifted revenue numbers, they also administered a minor downgrade to per-share earnings expectations.

The consensus price target was unchanged at CA$158, suggesting the business is performing roughly in line with expectations, despite some adjustments to profit and revenue forecasts. 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 Cargojet analyst has a price target of CA$193 per share, while the most pessimistic values it at CA$120. 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.

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 Cargojet'shistorical trends, as the 10% annualised revenue growth to the end of 2025 is roughly in line with the 12% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 3.3% annually. So although Cargojet is expected to maintain its revenue growth rate, it's definitely expected 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 Cargojet. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Cargojet analysts - going out to 2027, and you can see them free on our platform here.

You still need to take note of risks, for example - Cargojet has 2 warning signs we think you should be aware of.

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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.