How did OTEX's Q3 2025 EPS forecast compare to past trends?
4/3/2025 07:26pm
**Open Text's (OTEX) Q3 2025 EPS forecast is expected to show a significant year-over-year increase**, which is consistent with the company's historical EPS growth trends.
1. **Comparison to Historical Trends**: OTEX has demonstrated a strong track record of beating EPS estimates, with an 88% success rate over the last two years. This suggests that the company's EPS is likely to exceed expectations in Q3 2025, as it has done in the past.
2. **Year-over-Year Growth**: The EPS forecast for Q3 2025 is $0.90, which represents a 28.6% increase year-over-year. This is a notable increase, indicating a strong financial performance for the period.
3. **Consensus and Analyst Confidence**: Analysts have given OTEX a "Strong Buy" rating, indicating confidence in the company's future performance. This is supported by the fact that OTEX has consistently exceeded earnings expectations, as evidenced by its performance in Q3 2024, where Non-GAAP EPS was $0.94, in-line with expectations, and revenue exceeded expectations by $20 million.
4. **Dividend and Shareholder Returns**: OTEX has a history of increasing dividends, with a recent payment of $0.25 per share, yielding 2.6%, which is above the industry average. This suggests that the company is not only growing earnings but also returning capital to shareholders.
In conclusion, OTEX's Q3 2025 EPS forecast is expected to reflect the company's historical EPS growth trends, with a strong year-over-year increase, supported by analyst confidence and a track record of exceeding earnings expectations.