Shareholders will be ecstatic, with their stake up 75% over the past week following TTEC Holdings, Inc.‘s (NASDAQ:TTEC) latest quarterly results. Revenues of US$492m beat expectations by a respectable 2.5%, although statutory losses per share increased. TTEC Holdings lost US$0.10, which was 122% more than what the analysts had included in their models. 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. Readers will be glad to know we’ve aggregated the latest statutory forecasts to see whether the analysts have changed their mind on TTEC Holdings after the latest results.
Following the recent earnings report, the consensus from three analysts covering TTEC Holdings is for revenues of US$1.97b in 2027. This implies a measurable 2.3% decline in revenue compared to the last 12 months. TTEC Holdings is also expected to turn profitable, with statutory earnings of US$0.52 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$1.97b and earnings per share (EPS) of US$0.30 in 2027. Although the revenue estimates have not really changed, we can see there’s been a considerable lift to earnings per share expectations, suggesting that the analysts have become more bullish after the latest result.
Check out our latest analysis for TTEC Holdings
The consensus price target fell 25% to US$3.00, suggesting the increase in earnings forecasts was not enough to offset other the analysts concerns.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the TTEC Holdings’ past performance and to peers in the same industry. We would also point out that the forecast 1.8% annualised revenue decline to the end of 2027 is better than the historical trend, which saw revenues shrink 3.1% annually 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 revenue grow 6.1% per year. So it’s pretty clear that, while it does have declining revenues, the analysts also expect TTEC Holdings to suffer worse than the wider industry.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around TTEC Holdings’ earnings potential next year. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it’s tracking in line with expectations. Although our data does suggest that TTEC Holdings’ revenue is expected to perform worse than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of TTEC Holdings’ future valuation.
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 forecasts for TTEC Holdings going out to 2028, 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 2 warning signs with TTEC Holdings , and understanding them should be part of your investment process.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
