OneSpan Inc. Just Recorded A 60% EPS Beat: Here's What Analysts Are Forecasting Next

Shareholders might have noticed that OneSpan Inc. (NASDAQ:OSPN) filed its yearly result this time last week. The early response was not positive, with shares down 6.6% to US$16.04 in the past week. Revenues were US$243m, approximately in line with whatthe analysts expected, although statutory earnings per share (EPS) crushed expectations, coming in at US$1.46, an impressive 60% ahead of estimates. 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.

Check out our latest analysis for OneSpan

After the latest results, the four analysts covering OneSpan are now predicting revenues of US$248.7m in 2025. If met, this would reflect a modest 2.3% improvement in revenue compared to the last 12 months. Statutory earnings per share are expected to tumble 30% to US$1.05 in the same period. In the lead-up to this report, the analysts had been modelling revenues of US$248.5m and earnings per share (EPS) of US$0.95 in 2025. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 12% to US$19.33. 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 OneSpan at US$23.00 per share, while the most bearish prices it at US$15.00. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

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 clear from the latest estimates that OneSpan's rate of growth is expected to accelerate meaningfully, with the forecast 2.3% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 0.1% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 12% annually. It seems obvious that, while the future growth outlook is brighter than the recent past, OneSpan is expected to grow slower than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around OneSpan's earnings potential next year. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple OneSpan analysts - going out to 2026, and you can see them free on our platform here.

You still need to take note of risks, for example - OneSpan has 1 warning sign 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.