Last week, you might have seen that Vertex, Inc. (NASDAQ:VERX) released its quarterly result to the market. The early response was not positive, with shares down 5.8% to US$37.52 in the past week. Results were roughly in line with estimates, with revenues of US$177m and statutory earnings per share of US$0.07. 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.

We check all companies for important risks. See what we found for Vertex in our free report.NasdaqGM:VERX Earnings and Revenue Growth May 9th 2025

Taking into account the latest results, the consensus forecast from Vertex's 15 analysts is for revenues of US$763.4m in 2025. This reflects a decent 11% improvement in revenue compared to the last 12 months. Vertex is also expected to turn profitable, with statutory earnings of US$0.14 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$762.9m and earnings per share (EPS) of US$0.18 in 2025. So there's definitely been a decline in sentiment after the latest results, noting the pretty serious reduction to new EPS forecasts.

View our latest analysis for Vertex

It might be a surprise to learn that the consensus price target was broadly unchanged at US$46.96, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Vertex, with the most bullish analyst valuing it at US$61.00 and the most bearish at US$31.00 per share. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Vertex's past performance and to peers in the same industry. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 15% growth on an annualised basis. That is in line with its 14% annual growth over the past five years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 12% per year. It's clear that while Vertex's revenue growth is expected to continue on its current trajectory, it's only expected to grow in line with the industry itself.

Story Continues

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as 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 said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Vertex going out to 2027, and you can see them free on our platform here.

You can also view our analysis of Vertex's balance sheet, and whether we think Vertex is carrying too much debt, for free  on our platform here.

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.