Barrett Business Services, Inc. (NASDAQ:BBSI) Just Reported First-Quarter Earnings: Have Analysts Changed Their Mind On The Stock?

Barrett Business Services, Inc. (NASDAQ:BBSI) defied analyst predictions to release its quarterly results, which were ahead of market expectations. Results overall were solid, with revenues arriving 2.3% better than analyst forecasts at US$293m. Higher revenues also resulted in substantially lower statutory losses which, at US$0.04 per share, were 2.3% smaller than the analysts expected. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

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After the latest results, the four analysts covering Barrett Business Services are now predicting revenues of US$1.23b in 2025. If met, this would reflect a satisfactory 5.3% improvement in revenue compared to the last 12 months. Per-share earnings are expected to rise 6.7% to US$2.17. Before this earnings report, the analysts had been forecasting revenues of US$1.23b and earnings per share (EPS) of US$2.17 in 2025. 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 Barrett Business Services

There were no changes to revenue or earnings estimates or the price target of US$46.75, suggesting that the company has met expectations in its recent result. 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 Barrett Business Services, with the most bullish analyst valuing it at US$50.00 and the most bearish at US$45.00 per share. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Barrett Business Services' past performance and to peers in the same industry. The analysts are definitely expecting Barrett Business Services' growth to accelerate, with the forecast 7.1% annualised growth to the end of 2025 ranking favourably alongside historical growth of 5.5% per annum over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 6.9% per year. Barrett Business Services is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.

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. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at US$46.75, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Barrett Business Services. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Barrett Business Services analysts - going out to 2026, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 1 warning sign for Barrett Business Services you should know about.

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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.