It's been a good week for Victory Capital Holdings, Inc. (NASDAQ:VCTR) shareholders, because the company has just released its latest third-quarter results, and the shares gained 6.3% to US$64.74. Revenues were US$226m, approximately in line with expectations, although statutory earnings per share (EPS) performed substantially better. EPS of US$1.24 were also better than expected, beating analyst predictions by 11%. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Check out our latest analysis for Victory Capital Holdings

Taking into account the latest results, the most recent consensus for Victory Capital Holdings from six analysts is for revenues of US$1.47b in 2025. If met, it would imply a major 70% increase on its revenue over the past 12 months. Per-share earnings are expected to bounce 27% to US$5.21. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$1.44b and earnings per share (EPS) of US$5.06 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.

It will come as no surprise to learn that the analysts have increased their price target for Victory Capital Holdings 11% to US$65.67on the back of these upgrades. 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 Victory Capital Holdings, with the most bullish analyst valuing it at US$73.00 and the most bearish at US$57.00 per share. This is a very narrow spread of estimates, implying either that Victory Capital Holdings is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that Victory Capital Holdings' rate of growth is expected to accelerate meaningfully, with the forecast 53% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 4.8% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 5.7% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Victory Capital Holdings is expected to grow much faster than its 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 Victory Capital Holdings following these results. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected 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.

With that in mind, we wouldn't be too quick to come to a conclusion on Victory Capital Holdings. 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 Victory Capital Holdings going out to 2026, 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 Victory Capital Holdings that 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.