Yahoo Finance Mainstreet Equity Corp. Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year
As you might know, Mainstreet Equity Corp. (TSE:MEQ) just kicked off its latest first-quarter results with some very strong numbers. The company beat forecasts, with revenue of CA$58m, some 2.9% above estimates, and statutory earnings per share (EPS) coming in at CA$7.36, 404% ahead of expectations. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
Check out our latest analysis for Mainstreet Equity
After the latest results, the twin analysts covering Mainstreet Equity are now predicting revenues of CA$250.2m in 2024. If met, this would reflect a meaningful 9.1% improvement in revenue compared to the last 12 months. Statutory earnings per share are forecast to plummet 21% to CA$14.95 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of CA$244.2m and earnings per share (EPS) of CA$12.46 in 2024. There's been a pretty noticeable increase in sentiment, with the analysts upgrading revenues and making a nice increase in earnings per share in particular.
With these upgrades, we're not surprised to see that the analysts have lifted their price target 11% to CA$205per share.
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. We can infer from the latest estimates that forecasts expect a continuation of Mainstreet Equity'shistorical trends, as the 12% annualised revenue growth to the end of 2024 is roughly in line with the 11% 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 7.5% per year. So it's pretty clear that Mainstreet Equity is forecast to grow substantially faster than its industry.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Mainstreet Equity's earnings potential next year. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.
With that in mind, we wouldn't be too quick to come to a conclusion on Mainstreet Equity. Long-term earnings power is much more important than next year's profits. At least one analyst has provided forecasts out to 2025, which can be seen for free on our platform here.
Even so, be aware that Mainstreet Equity is showing 4 warning signs in our investment analysis , and 2 of those are potentially serious...
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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.
