CD Projekt S.A. Just Recorded A 143% EPS Beat: Here's What Analysts Are Forecasting Next

As you might know, CD Projekt S.A. (WSE:CDR) just kicked off its latest quarterly results with some very strong numbers. Statutory revenue of zł349m and earnings of zł1.92 both blasted past expectations, beating expectations by 26% and 143%, respectively, ahead of expectations. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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Taking into account the latest results, the current consensus, from the 15 analysts covering CD Projekt, is for revenues of zł900.7m in 2026. This implies an uncomfortable 20% reduction in CD Projekt's revenue over the past 12 months. Statutory earnings per share are expected to nosedive 40% to zł3.42 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of zł898.4m and earnings per share (EPS) of zł3.43 in 2026. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

View our latest analysis for CD Projekt

It will come as no surprise then, to learn that the consensus price target is largely unchanged at zł223. 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 CD Projekt analyst has a price target of zł330 per share, while the most pessimistic values it at zł95.00. We would probably assign less value to the analyst forecasts in this situation, because such a wide range of estimates could imply that the future of this business is difficult to value accurately. With this in mind, we wouldn't rely too heavily the consensus price target, as it is just an average and analysts clearly have some deeply divergent views on the business.

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. Over the past five years, revenues have declined around 11% annually. Worse, forecasts are essentially predicting the decline to accelerate, with the estimate for an annualised 16% decline in revenue until the end of 2026. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 30% per year. So it's pretty clear that, while it does have declining revenues, the analysts also expect CD Projekt to suffer worse than the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse 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.

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 CD Projekt analysts - going out to 2027, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 1 warning sign for CD Projekt that 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.