The quarterly results for Boyd Group Services Inc. (TSE:BYD) were released last week, making it a good time to revisit its performance. It was a pretty negative result overall, with revenues of US$778m missing analyst predictions by 2.1%. Worse, the business reported a statutory loss of US$0.12 per share, a substantial decline on analyst expectations of a profit. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

We've discovered 3 warning signs about Boyd Group Services. View them for free.TSX:BYD Earnings and Revenue Growth May 17th 2025

Taking into account the latest results, the current consensus from Boyd Group Services' twelve analysts is for revenues of US$3.16b in 2025. This would reflect a credible 3.1% increase on its revenue over the past 12 months. Per-share earnings are expected to soar 152% to US$1.59. In the lead-up to this report, the analysts had been modelling revenues of US$3.25b and earnings per share (EPS) of US$2.30 in 2025. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a large cut to earnings per share estimates.

See our latest analysis for Boyd Group Services

Despite the cuts to forecast earnings, there was no real change to the CA$258 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. 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 Boyd Group Services, with the most bullish analyst valuing it at CA$297 and the most bearish at CA$197 per share. 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.

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 Boyd Group Services' revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 4.2% growth on an annualised basis. This is compared to a historical growth rate of 16% 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 revenue shrink 2.1% per year. So it's clear that despite the slowdown in growth, Boyd Group Services is still expected to grow meaningfully faster than the wider industry.

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The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Boyd Group Services. Sadly they also cut their revenue estimates, although at least the company is expected to perform a bit better than the wider industry. The consensus price target held steady at CA$258, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Boyd Group Services. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Boyd Group Services analysts - going out to 2027, and you can see them free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk.  We've identified 3 warning signs  with Boyd Group Services (at least 1 which doesn't sit too well with us)  , and understanding them should be part of your investment process.

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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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