Earnings Beat: Everus Construction Group, Inc. Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models

Everus Construction Group, Inc. (NYSE:ECG) investors will be delighted, with the company turning in some strong numbers with its latest results. Statutory earnings performance was extremely strong, with revenue of US$827m beating expectations by 22% and earnings per share (EPS) of US$0.72, an impressive 67%ahead of expectations. 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 collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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Following last week's earnings report, Everus Construction Group's three analysts are forecasting 2025 revenues to be US$3.10b, approximately in line with the last 12 months. Statutory earnings per share are forecast to decline 15% to US$2.52 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$3.01b and earnings per share (EPS) of US$2.49 in 2025. There doesn't appear to have been a major change in sentiment following the results, other than the small increase to revenue estimates.

View our latest analysis for Everus Construction Group

The consensus price target increased 15% to US$66.33, with an improved revenue forecast carrying the promise of a more valuable business, in time. 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. There are some variant perceptions on Everus Construction Group, with the most bullish analyst valuing it at US$71.00 and the most bearish at US$60.00 per share. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Everus Construction Group is an easy business to forecast or the the analysts are all using similar assumptions.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Everus Construction Group's revenue growth is expected to slow, with the forecast 2.0% annualised growth rate until the end of 2025 being well below the historical 12% growth over the last year. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 7.7% annually. Factoring in the forecast slowdown in growth, it seems obvious that Everus Construction Group is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, they also upgraded their revenue estimates, although our data indicates it is expected to perform worse than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

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 Everus Construction Group analysts - going out to 2026, and you can see them free on our platform here.

Even so, be aware that Everus Construction Group is showing 2 warning signs in our investment analysis , and 1 of those shouldn't be ignored...

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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.