Bentley Systems, Incorporated Just Beat EPS By 22%: Here's What Analysts Think Will Happen Next

Investors in Bentley Systems, Incorporated (NASDAQ:BSY) had a good week, as its shares rose 6.3% to close at US$55.01 following the release of its quarterly results. Revenues were US$338m, approximately in line with whatthe analysts expected, although statutory earnings per share (EPS) crushed expectations, coming in at US$0.22, an impressive 22% ahead of estimates. 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 gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

View our latest analysis for Bentley Systems

Following the latest results, Bentley Systems' 14 analysts are now forecasting revenues of US$1.36b in 2024. This would be a notable 8.8% improvement in revenue compared to the last 12 months. Statutory earnings per share are expected to tumble 33% to US$0.74 in the same period. In the lead-up to this report, the analysts had been modelling revenues of US$1.36b and earnings per share (EPS) of US$0.71 in 2024. So the consensus seems to have become somewhat more optimistic on Bentley Systems' earnings potential following these results.

The consensus price target was unchanged at US$60.07, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Bentley Systems at US$64.00 per share, while the most bearish prices it at US$48.00. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Bentley Systems 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 can infer from the latest estimates that forecasts expect a continuation of Bentley Systems'historical trends, as the 12% annualised revenue growth to the end of 2024 is roughly in line with the 13% annual growth over the past three years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 13% per year. So although Bentley Systems is expected to maintain its revenue growth rate, it's only growing at about the rate of the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Bentley Systems' earnings potential next year. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as 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.

With that in mind, we wouldn't be too quick to come to a conclusion on Bentley Systems. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Bentley Systems analysts - going out to 2026, 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 Bentley Systems 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.