IHS Holding Limited Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next

A week ago, IHS Holding Limited (NYSE:IHS) came out with a strong set of third-quarter numbers that could potentially lead to a re-rate of the stock. The company beat forecasts, with revenue of US$455m, some 7.7% above estimates, and statutory earnings per share (EPS) coming in at US$0.44, 313% ahead of expectations. 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. 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, IHS Holding's eight analysts are forecasting 2026 revenues to be US$1.79b, approximately in line with the last 12 months. Statutory earnings per share are expected to plummet 55% to US$0.62 in the same period. Before this earnings report, the analysts had been forecasting revenues of US$1.82b and earnings per share (EPS) of US$0.63 in 2026. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

See our latest analysis for IHS Holding

The analysts reconfirmed their price target of US$9.47, showing that the business is executing well and in line with expectations. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values IHS Holding at US$17.00 per share, while the most bearish prices it at US$6.00. We would probably assign less value to the analyst forecasts in this situation, because such a wide range of estimates could imply that the future of this business is difficult to value accurately. As a result it might not be a great idea to make decisions based on the consensus price target, which is after all just an average of this wide range of estimates.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's pretty clear that there is an expectation that IHS Holding's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 1.3% growth on an annualised basis. This is compared to a historical growth rate of 4.2% 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 5.3% per year. Factoring in the forecast slowdown in growth, it seems obvious that IHS Holding is also expected to grow slower than other industry participants.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that IHS Holding's revenue is expected to perform worse than the wider industry. The consensus price target held steady at US$9.47, 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. We have forecasts for IHS Holding going out to 2027, and you can see them free on our platform here.

Even so, be aware that IHS Holding is showing 2 warning signs in our investment analysis , 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.