Earnings Miss: Globant S.A. Missed EPS By 30% And Analysts Are Revising Their Forecasts

There's been a major selloff in Globant S.A. (NYSE:GLOB) shares in the week since it released its first-quarter report, with the stock down 21% to US$101. Statutory earnings per share fell badly short of expectations, coming in at US$0.68, some 30% below analyst forecasts, although revenues were okay, approximately in line with analyst estimates at US$611m. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

We've discovered 1 warning sign about Globant. View them for free.

Taking into account the latest results, the current consensus from Globant's 23 analysts is for revenues of US$2.53b in 2025. This would reflect an okay 3.0% increase on its revenue over the past 12 months. Per-share earnings are expected to jump 25% to US$4.29. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$2.64b and earnings per share (EPS) of US$4.71 in 2025. The analysts are less bullish than they were before these results, given the reduced revenue forecasts and the minor downgrade to earnings per share expectations.

View our latest analysis for Globant

It'll come as no surprise then, to learn that the analysts have cut their price target 13% to US$158. 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. There are some variant perceptions on Globant, with the most bullish analyst valuing it at US$256 and the most bearish at US$108 per share. 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 Globant's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 4.1% growth on an annualised basis. This is compared to a historical growth rate of 25% 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 10% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Globant.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

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 Globant analysts - going out to 2027, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 1 warning sign for Globant you should know about.

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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.