Indra Sistemas, S.A. Just Recorded A 25% EPS Beat: Here's What Analysts Are Forecasting Next
It's been a good week for Indra Sistemas, S.A. (BME:IDR) shareholders, because the company has just released its latest quarterly results, and the shares gained 6.6% to €63.88. It looks to have been a decent result overall - while revenue fell marginally short of analyst estimates at €1.5b, statutory earnings beat expectations by a notable 25%, coming in at €0.77 per share. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
After the latest results, the 15 analysts covering Indra Sistemas are now predicting revenues of €7.79b in 2027. If met, this would reflect a meaningful 20% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to ascend 14% to €3.25. Yet prior to the latest earnings, the analysts had been anticipated revenues of €7.80b and earnings per share (EPS) of €3.24 in 2027. 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.
See our latest analysis for Indra Sistemas
There were no changes to revenue or earnings estimates or the price target of €69.10, suggesting that the company has met expectations in its recent result. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Indra Sistemas analyst has a price target of €85.00 per share, while the most pessimistic values it at €50.00. 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.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's clear from the latest estimates that Indra Sistemas' rate of growth is expected to accelerate meaningfully, with the forecast 16% annualised revenue growth to the end of 2027 noticeably faster than its historical growth of 13% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 7.7% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Indra Sistemas 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. 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. We have forecasts for Indra Sistemas going out to 2028, and you can see them free on our platform here.
It is also worth noting that we have found 1 warning sign for Indra Sistemas that you need to take into consideration.
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