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MDA Space Ltd. Just Beat EPS By 23%: Here's What Analysts Think Will Happen Next
MDA Space Ltd. (TSE:MDA) just released its latest quarterly results and things are looking bullish. It was a solid earnings report, with revenues and statutory earnings per share (EPS) both coming in strong. Revenues were 12% higher than the analysts had forecast, at CA$498m, while EPS were CA$0.19 beating analyst models by 23%. 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. 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 current consensus from MDA Space's twelve analysts is for revenues of CA$2.85b in 2027. This would reflect a huge 45% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to shoot up 91% to CA$1.26. Yet prior to the latest earnings, the analysts had been anticipated revenues of CA$2.84b and earnings per share (EPS) of CA$1.26 in 2027. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
See our latest analysis for MDA Space
It will come as no surprise then, to learn that the consensus price target is largely unchanged at CA$62.58. 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. There are some variant perceptions on MDA Space, with the most bullish analyst valuing it at CA$88.00 and the most bearish at CA$49.00 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The period to the end of 2027 brings more of the same, according to the analysts, with revenue forecast to display 35% growth on an annualised basis. That is in line with its 29% 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 11% per year. So although MDA Space is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.
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. 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$62.58, with the latest estimates not enough to have an impact on their price targets.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple MDA Space analysts - going out to 2028, and you can see them free on our platform here.
You should always think about risks though. Case in point, we've spotted 2 warning signs for MDA Space you should be aware of.
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