Globant S.A. Just Missed Earnings - But Analysts Have Updated Their Models

There's been a major selloff in Globant S.A. (NYSE:GLOB) shares in the week since it released its annual report, with the stock down 32% to US$152. Revenues of US$2.4b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at US$3.72, missing estimates by 7.0%. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Check out our latest analysis for Globant

Following the latest results, Globant's 23 analysts are now forecasting revenues of US$2.71b in 2025. This would be a notable 12% improvement in revenue compared to the last 12 months. Per-share earnings are expected to surge 23% to US$4.71. Before this earnings report, the analysts had been forecasting revenues of US$2.75b and earnings per share (EPS) of US$4.96 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.

It might be a surprise to learn that the consensus price target was broadly unchanged at US$230, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. 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. There are some variant perceptions on Globant, with the most bullish analyst valuing it at US$260 and the most bearish at US$140 per share. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

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. We would highlight that Globant's revenue growth is expected to slow, with the forecast 12% annualised growth rate until the end of 2025 being well below the historical 26% 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 9.5% annually. So it's pretty clear that, while Globant's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Globant. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at US$230, with the latest estimates not enough to have an impact on their price targets.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Globant analysts - going out to 2027, and you can see them free on our platform here.

It might also be worth considering whether Globant's debt load is appropriate, using our debt analysis tools on the Simply Wall St platform, here.

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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.