Investors in Infomedia Ltd (ASX:IFM) had a good week, as its shares rose 5.7% to close at AU$1.49 following the release of its half-yearly results. Results were roughly in line with estimates, with revenues of AU$71m and statutory earnings per share of AU$0.034. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for Infomedia

Taking into account the latest results, the most recent consensus for Infomedia from six analysts is for revenues of AU$146.0m in 2025. If met, it would imply a credible 2.5% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to step up 14% to AU$0.048. Yet prior to the latest earnings, the analysts had been anticipated revenues of AU$146.4m and earnings per share (EPS) of AU$0.06 in 2025. The analysts seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a substantial drop in EPS estimates.

The consensus price target held steady at AU$1.84, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Infomedia analyst has a price target of AU$2.10 per share, while the most pessimistic values it at AU$1.70. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Infomedia is an easy business to forecast or the the analysts are all using similar assumptions.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that Infomedia's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 5.1% growth on an annualised basis. This is compared to a historical growth rate of 10% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 16% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Infomedia.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Infomedia. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at AU$1.84, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Infomedia. 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 Infomedia going out to 2027, and you can see them free on our platform here..

And what about risks? Every company has them, and we've spotted 2 warning signs for Infomedia you should know about.

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