Consensus Cloud Solutions, Inc. Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year

The investors in Consensus Cloud Solutions, Inc.'s (NASDAQ:CCSI) will be rubbing their hands together with glee today, after the share price leapt 23% to US$34.00 in the week following its quarterly results. Consensus Cloud Solutions reported US$88m in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of US$1.30 beat expectations, being 9.6% higher than what the analysts expected. 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 collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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Taking into account the latest results, Consensus Cloud Solutions' five analysts currently expect revenues in 2026 to be US$355.5m, approximately in line with the last 12 months. Per-share earnings are expected to accumulate 3.8% to US$4.97. In the lead-up to this report, the analysts had been modelling revenues of US$355.6m and earnings per share (EPS) of US$4.87 in 2026. So the consensus seems to have become somewhat more optimistic on Consensus Cloud Solutions' earnings potential following these results.

See our latest analysis for Consensus Cloud Solutions

There's been no major changes to the consensus price target of US$33.00, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Consensus Cloud Solutions at US$40.00 per share, while the most bearish prices it at US$20.00. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's pretty clear that there is an expectation that Consensus Cloud Solutions' revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 1.7% growth on an annualised basis. This is compared to a historical growth rate of 7.2% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 17% annually. Factoring in the forecast slowdown in growth, it seems obvious that Consensus Cloud Solutions is also expected to grow slower than other industry participants.

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 Consensus Cloud Solutions following these results. 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.

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 estimates - from multiple Consensus Cloud Solutions analysts - going out to 2028, and you can see them free on our platform here.

It is also worth noting that we have found 1 warning sign for Consensus Cloud Solutions that you need to take into consideration.

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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.