Last week, you might have seen that Aussie Broadband Limited (ASX:ABB) released its half-yearly result to the market. The early response was not positive, with shares down 4.8% to AU$3.74 in the past week. Revenue of AU$588m surpassed estimates by 2.2%, although statutory earnings per share missed badly, coming in 41% below expectations at AU$0.041 per share. 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. 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 Aussie Broadband

Taking into account the latest results, the most recent consensus for Aussie Broadband from eleven analysts is for revenues of AU$1.18b in 2025. If met, it would imply a reasonable 3.5% increase on its revenue over the past 12 months. Per-share earnings are expected to grow 16% to AU$0.11. In the lead-up to this report, the analysts had been modelling revenues of AU$1.17b and earnings per share (EPS) of AU$0.13 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.

Althoughthe analysts have revised their earnings forecasts for next year, they've also lifted the consensus price target 8.9% to AU$4.39, suggesting the revised estimates are not indicative of a weaker long-term future for the business. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Aussie Broadband, with the most bullish analyst valuing it at AU$5.08 and the most bearish at AU$3.80 per share. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that Aussie Broadband's revenue growth is expected to slow, with the forecast 7.1% annualised growth rate until the end of 2025 being well below the historical 29% p.a. growth over the last three years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 3.5% annually. So it's pretty clear that, while Aussie Broadband's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Aussie Broadband. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Aussie Broadband going out to 2027, and you can see them free on our platform here..

However, before you get too enthused, we've discovered 1 warning sign for Aussie Broadband 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.