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BCE Inc. Just Beat EPS By 9.3%: Here's What Analysts Think Will Happen Next
It's been a good week for BCE Inc. (TSE:BCE) shareholders, because the company has just released its latest quarterly results, and the shares gained 7.3% to CA$30.57. The result was positive overall - although revenues of CA$6.2b were in line with what the analysts predicted, BCE surprised by delivering a statutory profit of CA$0.67 per share, modestly greater than expected. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on BCE after the latest results.
Following last week's earnings report, BCE's 15 analysts are forecasting 2027 revenues to be CA$25.3b, approximately in line with the last 12 months. Per-share earnings are expected to rise 5.7% to CA$2.72. In the lead-up to this report, the analysts had been modelling revenues of CA$25.3b and earnings per share (EPS) of CA$2.72 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.
View our latest analysis for BCE
The analysts reconfirmed their price target of CA$37.17, showing that the business is executing well and in line with expectations. 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 BCE analyst has a price target of CA$44.00 per share, while the most pessimistic values it at CA$32.50. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The period to the end of 2027 brings more of the same, according to the analysts, with revenue forecast to display 1.1% growth on an annualised basis. That is in line with its 1.0% annual growth over the past five years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 1.3% per year. It's clear that while BCE's revenue growth is expected to continue on its current trajectory, it's only expected to grow in line with the industry itself.
The Bottom Line
The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for BCE going out to 2028, and you can see them free on our platform here..
Plus, you should also learn about the 3 warning signs we've spotted with BCE (including 1 which doesn't sit too well with us) .
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