Magellan Financial Group Limited (ASX:MFG) just released its annual report and things are looking bullish. Magellan Financial Group delivered a significant beat to revenue and earnings per share (EPS) expectations, hitting AU$379m-20% above indicated-andAU$1.32-31% above forecasts- respectively 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

See our latest analysis for Magellan Financial Group

Taking into account the latest results, the eleven analysts covering Magellan Financial Group provided consensus estimates of AU$275.7m revenue in 2025, which would reflect a sizeable 27% decline over the past 12 months. Statutory earnings per share are forecast to tumble 41% to AU$0.78 in the same period. Before this earnings report, the analysts had been forecasting revenues of AU$272.8m and earnings per share (EPS) of AU$0.74 in 2025. So the consensus seems to have become somewhat more optimistic on Magellan Financial Group's earnings potential following these results.

The consensus price target rose 6.8% to AU$9.73, suggesting that higher earnings estimates flow through to the stock's valuation as well. 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 Magellan Financial Group, with the most bullish analyst valuing it at AU$11.44 and the most bearish at AU$8.26 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Magellan Financial Group shareholders.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Magellan Financial Group's past performance and to peers in the same industry. Over the past five years, revenues have declined around 13% annually. Worse, forecasts are essentially predicting the decline to accelerate, with the estimate for an annualised 27% decline in revenue until the end of 2025. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 4.8% per year. So while a broad number of companies are forecast to grow, unfortunately Magellan Financial Group is expected to see its revenue affected worse than other companies in the industry.