Investors in Bright Horizons Family Solutions Inc. (NYSE:BFAM) had a good week, as its shares rose 4.3% to close at US$111 following the release of its quarterly results. Revenues were US$623m, approximately in line with expectations, although statutory earnings per share (EPS) performed substantially better. EPS of US$0.29 were also better than expected, beating analyst predictions by 13%. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Bright Horizons Family Solutions after the latest results.

View our latest analysis for Bright Horizons Family Solutions

Taking into account the latest results, the most recent consensus for Bright Horizons Family Solutions from nine analysts is for revenues of US$2.67b in 2024. If met, it would imply a credible 7.3% increase on its revenue over the past 12 months. Per-share earnings are expected to surge 70% to US$2.43. Before this earnings report, the analysts had been forecasting revenues of US$2.66b and earnings per share (EPS) of US$2.41 in 2024. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at US$111. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Bright Horizons Family Solutions analyst has a price target of US$125 per share, while the most pessimistic values it at US$84.00. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

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 analysts are definitely expecting Bright Horizons Family Solutions' growth to accelerate, with the forecast 9.8% annualised growth to the end of 2024 ranking favourably alongside historical growth of 4.7% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 11% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Bright Horizons Family Solutions is expected to grow at about the same rate as the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target held steady at US$111, with the latest estimates not enough to have an impact on their price targets.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Bright Horizons Family Solutions going out to 2026, and you can see them free on our platform here..

Even so, be aware that Bright Horizons Family Solutions is showing 2 warning signs in our investment analysis , you should know about...

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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.