Barrett Business Services, Inc. (NASDAQ:BBSI) just released its latest third-quarter results and things are looking bullish. Results were good overall, with revenues beating analyst predictions by 2.4% to hit US$294m. Statutory earnings per share (EPS) came in at US$0.74, some 8.0% above whatthe analysts had expected. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
After the latest results, the four analysts covering Barrett Business Services are now predicting revenues of US$1.22b in 2025. If met, this would reflect a solid 8.9% improvement in revenue compared to the last 12 months. Per-share earnings are expected to grow 14% to US$2.21. In the lead-up to this report, the analysts had been modelling revenues of US$1.23b and earnings per share (EPS) of US$2.21 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
The consensus price target rose 9.4% to US$43.50despite there being no meaningful change to earnings estimates. It could be that the analystsare reflecting the predictability of Barrett Business Services' earnings by assigning a price premium. 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. The most optimistic Barrett Business Services analyst has a price target of US$45.00 per share, while the most pessimistic values it at US$40.00. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.
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 analysts are definitely expecting Barrett Business Services' growth to accelerate, with the forecast 7.1% annualised growth to the end of 2025 ranking favourably alongside historical growth of 4.6% per annum over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 5.7% per year. Barrett Business Services is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. There was also a nice increase in the price target, with the analysts 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 Barrett Business Services. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Barrett Business Services going out to 2026, 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 1 warning sign with Barrett Business Services , and understanding it 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.
