Investors in Bentley Systems, Incorporated (NASDAQ:BSY) had a good week, as its shares rose 6.7% to close at US$46.59 following the release of its quarterly results. It looks like a credible result overall - although revenues of US$371m were in line with what the analysts predicted, Bentley Systems surprised by delivering a statutory profit of US$0.28 per share, a notable 15% above expectations. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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After the latest results, the 16 analysts covering Bentley Systems are now predicting revenues of US$1.49b in 2025. If met, this would reflect an okay 7.2% improvement in revenue compared to the last 12 months. Per-share earnings are expected to grow 20% to US$0.97. Before this earnings report, the analysts had been forecasting revenues of US$1.48b and earnings per share (EPS) of US$0.91 in 2025. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

Check out our latest analysis for Bentley Systems

The consensus price target was unchanged at US$51.40, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Bentley Systems at US$61.00 per share, while the most bearish prices it at US$42.00. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

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. It's pretty clear that there is an expectation that Bentley Systems' revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 9.8% growth on an annualised basis. This is compared to a historical growth rate of 12% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 12% annually. Factoring in the forecast slowdown in growth, it seems obvious that Bentley Systems is also expected to grow slower than other industry participants.

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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 Bentley Systems following these results. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Bentley Systems' revenue is expected to perform worse 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 Bentley Systems going out to 2027, and you can see them free on our platform here.

Before you take the next step you should know about the 2 warning signs for Bentley Systems that we have uncovered.

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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.

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