Grid Dynamics Holdings, Inc. Just Recorded A 44% EPS Beat: Here's What Analysts Are Forecasting Next

Grid Dynamics Holdings, Inc. (NASDAQ:GDYN) just released its latest first-quarter results and things are looking bullish. The company beat forecasts, with revenue of US$100m, some 2.1% above estimates, and statutory earnings per share (EPS) coming in at US$0.03, 44% ahead of expectations. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Grid Dynamics Holdings after the latest results.

We've discovered 2 warning signs about Grid Dynamics Holdings. View them for free.

Following the latest results, Grid Dynamics Holdings' four analysts are now forecasting revenues of US$416.2m in 2025. This would be a meaningful 12% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to soar 21% to US$0.16. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$413.5m and earnings per share (EPS) of US$0.13 in 2025. Although the revenue estimates have not really changed, we can see there's been a very substantial lift in earnings per share expectations, suggesting that the analysts have become more bullish after the latest result.

View our latest analysis for Grid Dynamics Holdings

The consensus price target was unchanged at US$19.75, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. 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 Grid Dynamics Holdings analyst has a price target of US$24.00 per share, while the most pessimistic values it at US$16.00. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Grid Dynamics Holdings shareholders.

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. It's pretty clear that there is an expectation that Grid Dynamics Holdings' revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 16% growth on an annualised basis. This is compared to a historical growth rate of 23% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 9.7% annually. Even after the forecast slowdown in growth, it seems obvious that Grid Dynamics Holdings is also expected to grow faster than the wider industry.

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 Grid Dynamics Holdings following these results. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at US$19.75, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Grid Dynamics Holdings going out to 2027, and you can see them free on our platform here..

It is also worth noting that we have found 2 warning signs for Grid Dynamics Holdings 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.