Yahoo Finance Metro Inc. (TSE:MRU) Just Released Its Third-Quarter Earnings: Here's What Analysts Think
Investors in Metro Inc. (TSE:MRU) had a good week, as its shares rose 5.2% to close at CA$83.91 following the release of its third-quarter results. Results were roughly in line with estimates, with revenues of CA$6.7b and statutory earnings per share of CA$1.31. 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.
Check out our latest analysis for Metro
Following the latest results, Metro's seven analysts are now forecasting revenues of CA$21.9b in 2025. This would be a modest 2.3% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to climb 13% to CA$4.70. Before this earnings report, the analysts had been forecasting revenues of CA$21.8b and earnings per share (EPS) of CA$4.70 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
There were no changes to revenue or earnings estimates or the price target of CA$83.33, suggesting that the company has met expectations in its recent result. 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 Metro at CA$92.00 per share, while the most bearish prices it at CA$70.00. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.
Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that Metro's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 1.9% growth on an annualised basis. This is compared to a historical growth rate of 4.8% 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 3.4% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Metro.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Metro's revenue is expected to perform worse than the wider industry. The consensus price target held steady at CA$83.33, 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 Metro going out to 2026, and you can see them free on our platform here.
That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with Metro , and understanding it should be part of your investment process.
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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.
