Bright Horizons Family Solutions Inc. Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year

It's been a good week for Bright Horizons Family Solutions Inc. (NYSE:BFAM) shareholders, because the company has just released its latest second-quarter results, and the shares gained 8.7% to US$125. The result was positive overall - although revenues of US$732m were in line with what the analysts predicted, Bright Horizons Family Solutions surprised by delivering a statutory profit of US$0.95 per share, modestly greater than 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. 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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After the latest results, the eight analysts covering Bright Horizons Family Solutions are now predicting revenues of US$2.91b in 2025. If met, this would reflect a modest 4.2% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to jump 23% to US$3.80. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$2.89b and earnings per share (EPS) of US$3.58 in 2025. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

Check out our latest analysis for Bright Horizons Family Solutions

The consensus price target was unchanged at US$139, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. 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 Bright Horizons Family Solutions, with the most bullish analyst valuing it at US$160 and the most bearish at US$104 per share. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Bright Horizons Family Solutions' past performance and to peers in the same industry. It's pretty clear that there is an expectation that Bright Horizons Family Solutions' revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 8.5% growth on an annualised basis. This is compared to a historical growth rate of 13% 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) 9.5% annually. So it's pretty clear that, while Bright Horizons Family Solutions' revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Bright Horizons Family Solutions following these results. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target held steady at US$139, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Bright Horizons Family Solutions going out to 2027, and you can see them free on our platform here..

You still need to take note of risks, for example - Bright Horizons Family Solutions has 2 warning signs 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.