It's been a good week for SPS Commerce, Inc. (NASDAQ:SPSC) shareholders, because the company has just released its latest quarterly results, and the shares gained 8.5% to US$138. It looks like a credible result overall - although revenues of US$182m were what the analysts expected, SPS Commerce surprised by delivering a (statutory) profit of US$0.58 per share, an impressive 50% above what was forecast. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality.

Taking into account the latest results, the current consensus from SPS Commerce's eleven analysts is for revenues of US$760.5m in 2025. This would reflect a meaningful 14% increase on its revenue over the past 12 months. Statutory earnings per share are forecast to dip 4.2% to US$2.05 in the same period. In the lead-up to this report, the analysts had been modelling revenues of US$758.1m and earnings per share (EPS) of US$1.92 in 2025. So the consensus seems to have become somewhat more optimistic on SPS Commerce's earnings potential following these results.

View our latest analysis for SPS Commerce

The average the analysts price target fell 8.2% to US$179, suggesting thatthe analysts have other concerns, and the improved earnings per share outlook was not enough to allay them. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on SPS Commerce, with the most bullish analyst valuing it at US$210 and the most bearish at US$159 per share. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 18% growth on an annualised basis. That is in line with its 17% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 12% per year. So it's pretty clear that SPS Commerce is forecast to grow substantially 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 SPS Commerce following these results. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for SPS Commerce going out to 2027, and you can see them free on our platform here.

You can also see our analysis of SPS Commerce's Board and CEO remuneration and experience, and whether company insiders have been buying stock.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.