Yahoo Finance Earnings Beat: Future plc Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models
Future plc (LON:FUTR) just released its yearly report and things are looking bullish. Future beat earnings, with revenues hitting UK£340m, ahead of expectations, and statutory earnings per share outperforming analyst reckonings by a solid 15%. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Check out our latest analysis for Future
Taking into account the latest results, the current consensus from Future's five analysts is for revenues of UK£439.9m in 2021, which would reflect a huge 30% increase on its sales over the past 12 months. Per-share earnings are expected to leap 33% to UK£0.62. Before this earnings report, the analysts had been forecasting revenues of UK£437.4m and earnings per share (EPS) of UK£0.58 in 2021. So the consensus seems to have become somewhat more optimistic on Future's earnings potential following these results.
There's been no major changes to the consensus price target of UK£20.49, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Future at UK£21.10 per share, while the most bearish prices it at UK£19.20. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Future's past performance and to peers in the same industry. Next year brings more of the same, according to the analysts, with revenue forecast to grow 30%, in line with its 36% annual growth over the past five years. Compare this with the wider industry, which analyst estimates (in aggregate) suggest will see revenues grow 8.6% next year. So although Future is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider 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 Future following these results. Fortunately, they also reconfirmed their revenue numbers, suggesting sales are tracking in line with expectations - and our data suggests that revenues are expected to grow faster than the wider industry. The consensus price target held steady at UK£20.49, with the latest estimates not enough to have an impact on their price targets.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Future going out to 2023, and you can see them free on our platform here..
You can also view our analysis of Future's balance sheet, and whether we think Future is carrying too much debt, for free on our platform here.
This article by Simply Wall St is general in nature. 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.
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