BQE Water Inc. Just Missed EPS By 24%: Here's What Analysts Think Will Happen Next
It's shaping up to be a tough period for BQE Water Inc. (CVE:BQE), which a week ago released some disappointing quarterly results that could have a notable impact on how the market views the stock. It looks like quite a negative result overall, with both revenues and earnings falling well short of analyst predictions. Revenues of CA$9.2m missed by 17%, and statutory earnings per share of CA$1.42 fell short of forecasts by 24%. Following the result, the analyst has 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. So we gathered the latest post-earnings forecasts to see what estimate suggests is in store for next year.
Taking into account the latest results, the most recent consensus for BQE Water from lone analyst is for revenues of CA$35.5m in 2026. If met, it would imply a solid 15% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to rise 2.7% to CA$3.95. Yet prior to the latest earnings, the analyst had been anticipated revenues of CA$38.0m and earnings per share (EPS) of CA$4.49 in 2026. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a real cut to earnings per share estimates.
Check out our latest analysis for BQE Water
What's most unexpected is that the consensus price target rose 20% to CA$108, strongly implying the downgrade to forecasts is not expected to be more than a temporary blip.
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. The period to the end of 2026 brings more of the same, according to the analyst, with revenue forecast to display 32% growth on an annualised basis. That is in line with its 31% annual growth 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 revenues grow 0.4% per year. So it's pretty clear that BQE Water is forecast to grow substantially faster than its industry.
The Bottom Line
The most important thing to take away is that the analyst downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster 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.
With that in mind, we wouldn't be too quick to come to a conclusion on BQE Water. Long-term earnings power is much more important than next year's profits. At least one analyst has provided forecasts out to 2027, which can be seen for free on our platform here.
Don't forget that there may still be risks. For instance, we've identified 3 warning signs for BQE Water (1 can't be ignored) you should be aware of.
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.