Q2 Holdings, Inc. Just Recorded A 28% EPS Beat: Here's What Analysts Are Forecasting Next
Q2 Holdings, Inc. (NYSE:QTWO) defied analyst predictions to release its third-quarter results, which were ahead of market expectations. It was overall a positive result, with revenues beating expectations by 2.1% to hit US$226m. Q2 Holdings also reported a statutory profit of US$0.52, which was an impressive 28% above what the analysts had forecast. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
Taking into account the latest results, the most recent consensus for Q2 Holdings from 15 analysts is for revenues of US$980.0m in 2027. If met, it would imply a decent 13% increase on its revenue over the past 12 months. Per-share earnings are expected to leap 32% to US$2.36. Before this earnings report, the analysts had been forecasting revenues of US$975.3m and earnings per share (EPS) of US$2.39 in 2027. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
See our latest analysis for Q2 Holdings
There were no changes to revenue or earnings estimates or the price target of US$77.57, suggesting that the company has met expectations in its recent result. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Q2 Holdings, with the most bullish analyst valuing it at US$85.00 and the most bearish at US$67.01 per share. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The period to the end of 2027 brings more of the same, according to the analysts, with revenue forecast to display 10.0% growth on an annualised basis. That is in line with its 12% 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 17% per year. So it's pretty clear that Q2 Holdings is expected to grow slower than similar companies in the same industry.
The Bottom Line
The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Q2 Holdings' revenue is expected to perform worse than the wider industry. The consensus price target held steady at US$77.57, with the latest estimates not enough to have an impact on their price targets.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Q2 Holdings going out to 2028, and you can see them free on our platform here..
Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.
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