Results: Chorus Aviation Inc. Beat Earnings Expectations And Analysts Now Have New Forecasts
Chorus Aviation Inc. (TSE:CHR) just released its third-quarter report and things are looking bullish. Chorus Aviation beat earnings, with revenues hitting CA$346m, ahead of expectations, and statutory earnings per share outperforming analyst reckonings by a solid 11%. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
Taking into account the latest results, Chorus Aviation's seven analysts currently expect revenues in 2027 to be CA$1.37b, approximately in line with the last 12 months. Per-share earnings are expected to leap 21% to CA$2.72. Before this earnings report, the analysts had been forecasting revenues of CA$1.35b and earnings per share (EPS) of CA$2.26 in 2027. There was no real change to the revenue estimates, but the analysts do seem more bullish on earnings, given the massive increase in earnings per share expectations following these results.
Check out our latest analysis for Chorus Aviation
The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 6.3% to CA$36.11. 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. Currently, the most bullish analyst values Chorus Aviation at CA$42.00 per share, while the most bearish prices it at CA$29.00. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Chorus Aviation shareholders.
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. The period to the end of 2027 brings more of the same, according to the analysts, with revenue forecast to display 1.5% growth on an annualised basis. That is in line with its 1.7% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 6.9% per year. So although Chorus Aviation is expected to maintain its revenue growth rate, it's forecast 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 Chorus Aviation'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.
With that in mind, we wouldn't be too quick to come to a conclusion on Chorus Aviation. 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 Chorus Aviation going out to 2028, and you can see them free on our platform here..
Before you take the next step you should know about the 1 warning sign for Chorus Aviation that we have uncovered.
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