zł3,648 - That's What Analysts Think Benefit Systems S.A. (WSE:BFT) Is Worth After These Results

Benefit Systems S.A. (WSE:BFT) shareholders are probably feeling a little disappointed, since its shares fell 8.4% to zł3,015 in the week after its latest quarterly results. Results were roughly in line with estimates, with revenues of zł952m and statutory earnings per share of zł151. 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 most recent consensus for Benefit Systems from five analysts is for revenues of zł4.14b in 2025. If met, it would imply a decent 17% increase on its revenue over the past 12 months. Per-share earnings are expected to leap 31% to zł181. Before this earnings report, the analysts had been forecasting revenues of zł4.34b and earnings per share (EPS) of zł187 in 2025. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a minor downgrade to earnings per share estimates.

See our latest analysis for Benefit Systems

The average price target climbed 10% to zł3,648despite the reduced earnings forecasts, suggesting that this earnings impact could be a positive for the stock, once it passes. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Benefit Systems at zł4,300 per share, while the most bearish prices it at zł3,100. 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.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We can infer from the latest estimates that forecasts expect a continuation of Benefit Systems'historical trends, as the 23% annualised revenue growth to the end of 2025 is roughly in line with the 28% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 5.7% annually. So it's pretty clear that Benefit Systems is forecast to grow substantially faster than its industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Benefit Systems. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than 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.

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

You still need to take note of risks, for example - Benefit Systems has 1 warning sign 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.