Global Water Resources, Inc. (NASDAQ:GWRS) shareholders are probably feeling a little disappointed, since its shares fell 5.2% to US$6.70 in the week after its latest quarterly results. Revenues were US$13m, with Global Water Resources reporting some 5.7% below analyst expectations. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

After the latest results, the two analysts covering Global Water Resources are now predicting revenues of US$58.3m in 2026. If met, this would reflect a reasonable 3.1% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to rise 2.3% to US$0.071. In the lead-up to this report, the analysts had been modelling revenues of US$63.0m and earnings per share (EPS) of US$0.14 in 2026. The analysts seem less optimistic after the recent results, reducing their revenue forecasts and making a large cut to earnings per share numbers.

It'll come as no surprise then, to learn that the analysts have cut their price target 9.7% to US$9.80.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Global Water Resources' past performance and to peers in the same industry. We would highlight that Global Water Resources' revenue growth is expected to slow, with the forecast 4.1% annualised growth rate until the end of 2026 being well below the historical 7.2% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 6.4% annually. Factoring in the forecast slowdown in growth, it seems obvious that Global Water Resources is also expected to grow slower than other industry participants.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Global Water Resources. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. 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.

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. We have analyst estimates for Global Water Resources going out as far as 2028, and you can see them free on our platform here.

Even so, be aware that Global Water Resources is showing 4 warning signs in our investment analysis , and 3 of those shouldn't be ignored...

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.