Analyst Estimates: Here's What Brokers Think Of PSI Software SE (ETR:PSAN) After Its Annual Report

It's been a good week for PSI Software SE (ETR:PSAN) shareholders, because the company has just released its latest yearly results, and the shares gained 2.6% to €24.00. It was a pretty bad result overall; while revenues were in line with expectations at €261m, statutory losses exploded to €1.35 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on PSI Software after the latest results.

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Following the latest results, PSI Software's six analysts are now forecasting revenues of €286.8m in 2025. This would be a meaningful 9.9% improvement in revenue compared to the last 12 months. Earnings are expected to improve, with PSI Software forecast to report a statutory profit of €0.38 per share. In the lead-up to this report, the analysts had been modelling revenues of €286.9m and earnings per share (EPS) of €0.22 in 2025. Although the revenue estimates have not really changed, we can see there's been a great increase in earnings per share expectations, suggesting that the analysts have become more bullish after the latest result.

View our latest analysis for PSI Software

There's been no major changes to the consensus price target of €31.17, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. 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. There are some variant perceptions on PSI Software, with the most bullish analyst valuing it at €38.50 and the most bearish at €25.00 per share. 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. The analysts are definitely expecting PSI Software's growth to accelerate, with the forecast 9.9% annualised growth to the end of 2025 ranking favourably alongside historical growth of 4.0% per annum over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 11% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that PSI Software is expected to grow at about the same rate as 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 PSI Software's earnings potential next year. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target held steady at €31.17, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on PSI Software. Long-term earnings power is much more important than next year's profits. We have forecasts for PSI Software going out to 2027, and you can see them free on our platform here.

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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.