What's the outlook for IHS's EPS in 2025?
4/10/2025 11:27am
**IHS's EPS is expected to show improvement in 2025**. Here's a detailed analysis:
1. **Current Financial Performance and Trends**:
- IHS Holding reported a substantial beat in Q3 2024 earnings, with EPS of $0.73, surpassing the consensus estimate of $0.01.
- For the full year 2024, IHS Holding's EPS improved from a $5.93 loss in FY 2023 to a $4.90 loss per share.
2. **Analyst Expectations and Price Targets**:
- The average analyst price target for IHS Holding is $5.5, with a consensus rating of "Buy".
- A recent price target increase to $16.00 by TD Cowen suggests confidence in IHS's future performance.
3. **Revenue Growth and Profitability**:
- IHS Holding's revenue is forecasted to grow 4.6% per annum over the next three years, compared to the 3.1% growth forecast for the Telecom industry.
- The company's strategic measures have contributed to a 250 basis point increase in Adjusted EBITDA Margin to 56.3%, indicating improved profitability.
4. **Dividend Yield and Investment Potential**:
- IHS Holding is among the 21 US stocks forecasted to pay a dividend yield of over 6% next year.
- The company's shares have shown significant year-to-date momentum, with a 51.71% gain, suggesting a positive market sentiment.
5. **Market Position and Strategic Initiatives**:
- IHS Holding is well-positioned in Nigeria, with potential increased capital expenditures by carriers and stabilizing fiscal conditions.
- The company's plans to optimize cash generation and asset dispositions suggest a focused approach to improve financial health.
In conclusion, IHS Holding's EPS is likely to show improvement in 2025 due to better financial performance, positive analyst ratings, and strategic initiatives.