It's been a good week for Mainstreet Equity Corp. (TSE:MEQ) shareholders, because the company has just released its latest third-quarter results, and the shares gained 5.3% to CA$190. Things were not great overall, with a surprise (statutory) loss of CA$1.70 per share on revenues of CA$63m, even though the analysts had been expecting a profit. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

View our latest analysis for Mainstreet Equity

Taking into account the latest results, the consensus forecast from Mainstreet Equity's dual analysts is for revenues of CA$275.3m in 2025. This reflects a solid 15% improvement in revenue compared to the last 12 months. Statutory earnings per share are expected to plummet 38% to CA$8.32 in the same period. Before this earnings report, the analysts had been forecasting revenues of CA$269.0m and earnings per share (EPS) of CA$8.07 in 2025. So there seems to have been a moderate uplift in sentiment following the latest results, given the upgrades to both revenue and earnings per share forecasts for next year.

With these upgrades, we're not surprised to see that the analysts have lifted their price target 6.1% to CA$218per share.

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 2025 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 11% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 7.6% annually. So although Mainstreet Equity is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Mainstreet Equity following these results. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At least one analyst has provided forecasts out to 2025, which can be seen for free on our platform here.

Even so, be aware that Mainstreet Equity is showing 3 warning signs in our investment analysis , and 2 of those are potentially serious...

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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.

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