V2X, Inc. Beat Analyst Estimates: See What The Consensus Is Forecasting For Next Year

It's been a good week for V2X, Inc. (NYSE:VVX) shareholders, because the company has just released its latest quarterly results, and the shares gained 9.9% to US$68.82. V2X reported US$1.1b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of US$0.47 beat expectations, being 8.5% higher than what the analysts expected. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

View our latest analysis for V2X

Taking into account the latest results, the current consensus from V2X's six analysts is for revenues of US$4.46b in 2025. This would reflect a reasonable 6.2% increase on its revenue over the past 12 months. Per-share earnings are expected to bounce 568% to US$1.94. In the lead-up to this report, the analysts had been modelling revenues of US$4.43b and earnings per share (EPS) of US$2.16 in 2025. The analysts seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a substantial drop in EPS estimates.

Althoughthe analysts have revised their earnings forecasts for next year, they've also lifted the consensus price target 6.6% to US$72.83, suggesting the revised estimates are not indicative of a weaker long-term future for the business. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values V2X at US$80.00 per share, while the most bearish prices it at US$68.00. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting V2X 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. It's pretty clear that there is an expectation that V2X's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 4.9% growth on an annualised basis. This is compared to a historical growth rate of 28% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 4.0% annually. So it's pretty clear that, while V2X's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for V2X. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall 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.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for V2X going out to 2026, and you can see them free on our platform here.

Before you take the next step you should know about the 2 warning signs for V2X (1 is concerning!) that we have uncovered.

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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.