It’s been a mediocre week for Badger Infrastructure Solutions Ltd. (TSE:BDGI) shareholders, with the stock dropping 11% to CA$74.74 in the week since its latest quarterly results. It looks like a pretty bad result, all things considered. Although revenues of US$287m were in line with analyst predictions, statutory earnings fell badly short, missing estimates by 21% to hit US$0.81 per share. 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. Readers will be glad to know we’ve aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Badger Infrastructure Solutions after the latest results.
After the latest results, the seven analysts covering Badger Infrastructure Solutions are now predicting revenues of US$1.11b in 2027. If met, this would reflect a decent 16% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to bounce 54% to US$2.70. Before this earnings report, the analysts had been forecasting revenues of US$1.10b and earnings per share (EPS) of US$2.92 in 2027. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.
Check out our latest analysis for Badger Infrastructure Solutions
The consensus price target held steady at CA$112, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. 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. There are some variant perceptions on Badger Infrastructure Solutions, with the most bullish analyst valuing it at CA$124 and the most bearish at CA$100 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.
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. The period to the end of 2027 brings more of the same, according to the analysts, with revenue forecast to display 12% growth on an annualised basis. That is in line with its 14% 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 3.5% per year. So although Badger Infrastructure Solutions is expected to maintain its revenue growth rate, it’s definitely expected to grow faster than the wider industry.
The Bottom Line
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Badger Infrastructure Solutions. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
With that said, the long-term trajectory of the company’s earnings is a lot more important than next year. We have estimates – from multiple Badger Infrastructure Solutions analysts – going out to 2028, and you can see them free on our platform here.
Don’t forget that there may still be risks. For instance, we’ve identified 1 warning sign for Badger Infrastructure Solutions that you should be aware of.
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