ADF Group: Results: ADF Group Inc. Beat Earnings Expectations And Analysts Now Have New Forecasts

ADF Group Inc. ( TSE:DRX ) defied analyst predictions to release its quarterly results, which were ahead of market expectations. ADF Group delivered a significant beat to revenue and earnings per share (EPS) expectations, hitting CA$107m-19% above indicated-andCA$0.47-38% above forecasts- respectively The analyst 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. We thought readers would find it interesting to see the analyst latest (statutory) post-earnings forecasts for next year. Check out our latest analysis for ADF Group earnings-and-revenue-growth Taking into account the latest results, the consensus forecast from ADF Group's lone analyst is for revenues of CA$380.5m in 2025. This reflects a reasonable 6.2% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to increase 3.0% to CA$1.50. Before this earnings report, the analyst had been forecasting revenues of CA$363.0m and earnings per share (EPS) of CA$1.36 in 2025. There's been a pretty noticeable increase in sentiment, with the analyst upgrading revenues and making a nice gain to earnings per share in particular. With these upgrades, we're not surprised to see that the analyst has lifted their price target 15% to CA$23.00per share. 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. We would highlight that ADF Group's revenue growth is expected to slow, with the forecast 8.4% annualised growth rate until the end of 2025 being well below the historical 16% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 14% 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 ADF Group. The Bottom Line The most important thing here is that the analyst upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards ADF Group following these results. Fortunately, they also upgraded their revenue estimates, although our data indicates it is expected to perform worse than the wider industry. There was also a nice increase in the price target, with the analyst clearly feeling that the intrinsic value of the business is improving. Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have analyst estimates for ADF Group going out as far as 2026, and you can see them free on our platform here. Before you take the next step you should know about the 1 warning sign for ADF Group that we have uncovered. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. 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. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com