WillScot Holdings Corporation Just Recorded A 8.4% EPS Beat: Here's What Analysts Are Forecasting Next
WillScot Holdings Corporation (NASDAQ:WSC) investors will be delighted, with the company turning in some strong numbers with its latest results. Results were good overall, with revenues beating analyst predictions by 4.6% to hit US$612m. Statutory earnings per share (EPS) came in at US$0.26, some 8.4% above whatthe analysts had 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Following last week's earnings report, WillScot Holdings' ten analysts are forecasting 2026 revenues to be US$2.31b, approximately in line with the last 12 months. WillScot Holdings is also expected to turn profitable, with statutory earnings of US$1.05 per share. In the lead-up to this report, the analysts had been modelling revenues of US$2.26b and earnings per share (EPS) of US$1.03 in 2026. It looks like there's been a modest increase in sentiment following the latest results, withthe analysts becoming a bit more optimistic in their predictions for both revenues and earnings.
Check out our latest analysis for WillScot Holdings
Althoughthe analysts have upgraded their earnings estimates, there was no change to the consensus price target of US$29.40, suggesting that the forecast performance does not have a long term impact on the company's valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic WillScot Holdings analyst has a price target of US$37.00 per share, while the most pessimistic values it at US$26.00. 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. It's pretty clear that there is an expectation that WillScot Holdings' revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 1.7% growth on an annualised basis. This is compared to a historical growth rate of 6.5% 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 13% 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 WillScot Holdings.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around WillScot Holdings' earnings potential next year. Fortunately, they also upgraded their revenue estimates, although our data indicates it is expected to perform worse than the wider industry. The consensus price target held steady at US$29.40, with the latest estimates not enough to have an impact on their price targets.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple WillScot Holdings analysts - going out to 2028, and you can see them free on our platform here.
It is also worth noting that we have found 2 warning signs for WillScot Holdings (1 makes us a bit uncomfortable!) that you need to take into consideration.
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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.