Ipsos SA (EPA:IPS) Just Reported Half-Year Earnings: Have Analysts Changed Their Mind On The Stock?

Last week saw the newest interim earnings release from Ipsos SA (EPA:IPS), an important milestone in the company's journey to build a stronger business. Ipsos reported in line with analyst predictions, delivering revenues of €1.2b and statutory earnings per share of €4.66, suggesting the business is executing well and in line with its plan. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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After the latest results, the nine analysts covering Ipsos are now predicting revenues of €2.55b in 2025. If met, this would reflect a modest 3.9% improvement in revenue compared to the last 12 months. Per-share earnings are expected to swell 17% to €4.87. Yet prior to the latest earnings, the analysts had been anticipated revenues of €2.58b and earnings per share (EPS) of €5.13 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.

View our latest analysis for Ipsos

It might be a surprise to learn that the consensus price target was broadly unchanged at €63.56, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. 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 Ipsos, with the most bullish analyst valuing it at €73.00 and the most bearish at €43.00 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Ipsos shareholders.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's clear from the latest estimates that Ipsos' rate of growth is expected to accelerate meaningfully, with the forecast 8.0% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 5.8% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 0.9% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Ipsos is expected to grow much faster than its 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. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at €63.56, 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 estimates - from multiple Ipsos analysts - going out to 2027, and you can see them free on our platform here.

It is also worth noting that we have found 1 warning sign for Ipsos that you need to take into consideration.

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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.