Analysts Are Updating Their Consensus Cloud Solutions, Inc. (NASDAQ:CCSI) Estimates After Its Third-Quarter Results

Investors in Consensus Cloud Solutions, Inc. (NASDAQ:CCSI) had a good week, as its shares rose 9.4% to close at US$25.05 following the release of its quarterly results. Consensus Cloud Solutions beat revenue expectations by 2.8%, at US$88m. Statutory earnings per share (EPS) came in at US$1.09, some 2.5% short of analyst estimates. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for Consensus Cloud Solutions

After the latest results, the consensus from Consensus Cloud Solutions' five analysts is for revenues of US$342.1m in 2025, which would reflect a noticeable 2.6% decline in revenue compared to the last year of performance. Per-share earnings are expected to increase 8.1% to US$4.93. In the lead-up to this report, the analysts had been modelling revenues of US$340.8m and earnings per share (EPS) of US$4.91 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.

There were no changes to revenue or earnings estimates or the price target of US$23.80, suggesting that the company has met expectations in its recent result. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Consensus Cloud Solutions at US$30.00 per share, while the most bearish prices it at US$17.00. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

Of course, another way to look at these forecasts is to place them into context against the industry itself. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 2.1% by the end of 2025. This indicates a significant reduction from annual growth of 8.5% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 12% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Consensus Cloud Solutions is expected to lag the wider industry.

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, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Consensus Cloud Solutions' revenue is expected to perform worse than 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 Consensus Cloud Solutions. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Consensus Cloud Solutions analysts - going out to 2026, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 2 warning signs for Consensus Cloud Solutions 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.