As you might know, OPENLANE, Inc. (NYSE:KAR) just kicked off its latest third-quarter results with some very strong numbers. The company beat forecasts, with revenue of US$448m, some 3.9% above estimates, and statutory earnings per share (EPS) coming in at US$0.12, 23% ahead of expectations. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on OPENLANE after the latest results.

Check out our latest analysis for OPENLANE

Taking into account the latest results, the current consensus from OPENLANE's seven analysts is for revenues of US$1.78b in 2025. This would reflect a credible 5.5% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to jump 121% to US$0.55. In the lead-up to this report, the analysts had been modelling revenues of US$1.79b and earnings per share (EPS) of US$0.52 in 2025. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

There's been no major changes to the consensus price target of US$20.83, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. 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. Currently, the most bullish analyst values OPENLANE at US$25.00 per share, while the most bearish prices it at US$19.00. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

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. One thing stands out from these estimates, which is that OPENLANE is forecast to grow faster in the future than it has in the past, with revenues expected to display 4.4% annualised growth until the end of 2025. If achieved, this would be a much better result than the 9.8% annual decline over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 7.1% annually for the foreseeable future. Although OPENLANE's revenues are expected to improve, it seems that the analysts are still bearish on the business, forecasting it to grow slower than the broader industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around OPENLANE's earnings potential next year. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse 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 in mind, we wouldn't be too quick to come to a conclusion on OPENLANE. Long-term earnings power is much more important than next year's profits. We have forecasts for OPENLANE going out to 2026, and you can see them free on our platform here.

You still need to take note of risks, for example - OPENLANE has 1 warning sign we think you should be aware of.

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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.