XPEL, Inc. (NASDAQ:XPEL) just released its latest quarterly results and things are looking bullish. The company beat expectations with revenues of US$143m arriving 5.9% ahead of forecasts. Statutory earnings per share (EPS) were US$0.65, 7.7% ahead of estimates. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Taking into account the latest results, the consensus forecast from XPEL's three analysts is for revenues of US$532.0m in 2026. This reflects a satisfactory 4.7% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to expand 10% to US$2.19. In the lead-up to this report, the analysts had been modelling revenues of US$520.9m and earnings per share (EPS) of US$2.01 in 2026. So there seems to have been a moderate uplift in sentiment following the latest results, given the upgrades to both revenue and earnings per share forecasts for next year.

It will come as no surprise to learn that the analysts have increased their price target for XPEL 19% to US$61.67on the back of these upgrades. 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. The most optimistic XPEL analyst has a price target of US$65.00 per share, while the most pessimistic values it at US$60.00. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting XPEL is an easy business to forecast or the the analysts are all using similar assumptions.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the XPEL's past performance and to peers in the same industry. It's pretty clear that there is an expectation that XPEL's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 9.6% growth on an annualised basis. This is compared to a historical growth rate of 15% over the past five years. Compare this to the 60 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 7.8% per year. So it's pretty clear that, while XPEL's revenue growth is expected to slow, it's expected to grow roughly in line with the 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 XPEL following these results. There was also an upgrade to revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

With that in mind, we wouldn't be too quick to come to a conclusion on XPEL. Long-term earnings power is much more important than next year's profits. We have forecasts for XPEL going out to 2028, and you can see them free on our platform here.

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.