The investors in IHS Holding Limited's (NYSE:IHS) will be rubbing their hands together with glee today, after the share price leapt 22% to US$4.52 in the week following its full-year results. It was a respectable set of results; while revenues of US$1.7b were in line with analyst predictions, statutory losses were 12% smaller than expected, with IHS Holding losing US$4.90 per share. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Check out our latest analysis for IHS Holding
Taking into account the latest results, IHS Holding's seven analysts currently expect revenues in 2025 to be US$1.69b, approximately in line with the last 12 months. Earnings are expected to improve, with IHS Holding forecast to report a statutory profit of US$0.40 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$1.71b and earnings per share (EPS) of US$0.24 in 2025. Although the revenue estimates have not really changed, we can see there's been a very substantial lift in earnings per share expectations, suggesting that the analysts have become more bullish after the latest result.
The consensus price target was unchanged at US$7.09, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values IHS Holding at US$16.00 per share, while the most bearish prices it at US$4.00. So we wouldn't be assigning too much credibility to analyst price targets in this case, because there are clearly some widely different views on what kind of performance this business can generate. As a result it might not be a great idea to make decisions based on the consensus price target, which is after all just an average of this wide range of estimates.
Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that revenue is expected to reverse, with a forecast 1.0% annualised decline to the end of 2025. That is a notable change from historical growth of 8.4% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 3.0% per year. It's pretty clear that IHS Holding's revenues are expected to perform substantially worse than the wider industry.
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 IHS Holding following these results. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at US$7.09, 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 IHS Holding. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple IHS Holding analysts - going out to 2027, and you can see them free on our platform here.
Don't forget that there may still be risks. For instance, we've identified 1 warning sign for IHS Holding that you should be aware of.
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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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