EN
Verisure plc Just Recorded A 600% EPS Beat: Here's What Analysts Are Forecasting Next
Investors in Verisure plc (STO:VSURE) had a good week, as its shares rose 3.6% to close at €10.88 following the release of its third-quarter results. It looks like a credible result overall - although revenues of €1.0b were what the analysts expected, Verisure surprised by delivering a (statutory) profit of €0.07 per share, an impressive 600% above what was forecast. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
Taking into account the latest results, the most recent consensus for Verisure from ten analysts is for revenues of €4.47b in 2027. If met, it would imply a solid 11% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to soar 1,028% to €0.21. Before this earnings report, the analysts had been forecasting revenues of €4.47b and earnings per share (EPS) of €0.21 in 2027. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.
See our latest analysis for Verisure
There's been no major changes to the consensus price target of €14.83, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Verisure analyst has a price target of €19.00 per share, while the most pessimistic values it at €11.90. 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. We can infer from the latest estimates that forecasts expect a continuation of Verisure'shistorical trends, as the 8.5% annualised revenue growth to the end of 2027 is roughly in line with the 9.5% annual growth over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 6.0% per year. So it's pretty clear that Verisure is forecast to grow substantially faster than its industry.
The Bottom Line
The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Verisure 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 €14.83, 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 Verisure. Long-term earnings power is much more important than next year's profits. We have forecasts for Verisure going out to 2028, and you can see them free on our platform here.
Plus, you should also learn about the 2 warning signs we've spotted with Verisure (including 1 which is potentially serious) .
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.