Boyd Group Services Inc. Just Missed EPS By 90%: Here's What Analysts Think Will Happen Next
Last week, you might have seen that Boyd Group Services Inc. (TSE:BYD) released its second-quarter result to the market. The early response was not positive, with shares down 8.0% to CA$131 in the past week. Statutory earnings per share fell badly short of expectations, coming in at US$0.05, some 90% below analyst forecasts, although revenues were okay, approximately in line with analyst estimates at US$1.0b. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Taking into account the latest results, the current consensus from Boyd Group Services' 14 analysts is for revenues of US$4.08b in 2026. This would reflect a notable 13% increase on its revenue over the past 12 months. Per-share earnings are expected to jump 196% to US$0.96. Before this earnings report, the analysts had been forecasting revenues of US$4.12b and earnings per share (EPS) of US$2.64 in 2026. So there's definitely been a decline in sentiment after the latest results, noting the pretty serious reduction to new EPS forecasts.
View our latest analysis for Boyd Group Services
The consensus price target held steady at CA$224, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. 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 Boyd Group Services analyst has a price target of CA$270 per share, while the most pessimistic values it at CA$190. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.
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 clear from the latest estimates that Boyd Group Services' rate of growth is expected to accelerate meaningfully, with the forecast 29% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 13% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 0.09% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Boyd Group Services to grow faster than the wider industry.
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. 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 CA$224, with the latest estimates not enough to have an impact on their price targets.
With that in mind, we wouldn't be too quick to come to a conclusion on Boyd Group Services. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Boyd Group Services going out to 2028, and you can see them free on our platform here..
And what about risks? Every company has them, and we've spotted 3 warning signs for Boyd Group Services (of which 1 is a bit unpleasant!) 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.