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

The second-quarter results for Consensus Cloud Solutions, Inc. (NASDAQ:CCSI) were released last week, making it a good time to revisit its performance. Revenues were US$91m, approximately in line with expectations, although statutory earnings per share (EPS) performed substantially better. EPS of US$1.43 were also better than expected, beating analyst predictions by 14%. 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. 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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Taking into account the latest results, Consensus Cloud Solutions' four analysts currently expect revenues in 2026 to be US$359.5m, approximately in line with the last 12 months. Statutory per share are forecast to be US$5.16, approximately in line with the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$357.4m and earnings per share (EPS) of US$5.05 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

The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 6.4% to US$41.75. 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$50.00 per share, while the most bearish prices it at US$35.00. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that Consensus Cloud Solutions' revenue growth is expected to slow, with the forecast 2.7% annualised growth rate until the end of 2026 being well below the historical 6.1% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 17% per year. 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 also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

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 forecasts for Consensus Cloud Solutions going out to 2028, and you can see them free on our platform here.

You still need to take note of risks, for example - Consensus Cloud 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.