Earnings Update: Consensus Cloud Solutions, Inc. (NASDAQ:CCSI) Just Reported Its Third-Quarter Results And Analysts Are Updating Their Forecasts

There's been a notable change in appetite for Consensus Cloud Solutions, Inc. (NASDAQ:CCSI) shares in the week since its third-quarter report, with the stock down 17% to US$24.48. It was a credible result overall, with revenues of US$88m and statutory earnings per share of US$1.15 both in line with analyst estimates, showing that Consensus Cloud Solutions is executing in line with expectations. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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Following last week's earnings report, Consensus Cloud Solutions' four analysts are forecasting 2026 revenues to be US$349.1m, approximately in line with the last 12 months. Statutory earnings per share are predicted to swell 11% to US$4.78. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$352.5m and earnings per share (EPS) of US$4.69 in 2026. 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.

Check out our latest analysis for Consensus Cloud Solutions

It will come as no surprise then, to learn that the consensus price target is largely unchanged at US$30.60. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Consensus Cloud Solutions analyst has a price target of US$38.00 per share, while the most pessimistic values it at US$20.00. 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.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 0.1% by the end of 2026. This indicates a significant reduction from annual growth of 7.5% 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 15% annually for the foreseeable future. It's pretty clear that Consensus Cloud Solutions' revenues are expected to perform substantially worse than 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. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will 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 said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Consensus Cloud Solutions analysts - going out to 2027, and you can see them free on our platform here.

It is also worth noting that we have found 3 warning signs for Consensus Cloud Solutions (1 makes us a bit uncomfortable!) 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.