Yahoo Finance M.P. Evans Group PLC Just Missed EPS By 7.5%: Here's What Analysts Think Will Happen Next
As you might know, M.P. Evans Group PLC (LON:MPE) recently reported its annual numbers. It was a pretty mixed result, with revenues beating expectations to hit US$307m. Statutory earnings fell 7.5% short of analyst forecasts, reaching US$0.97 per share. Following the result, the analyst has 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. We've gathered the most recent statutory forecasts to see whether the analyst has changed their earnings models, following these results.
Check out our latest analysis for M.P. Evans Group
Following last week's earnings report, M.P. Evans Group's single analyst are forecasting 2024 revenues to be US$308.0m, approximately in line with the last 12 months. Per-share earnings are expected to increase 8.4% to US$1.08. Before this earnings report, the analyst had been forecasting revenues of US$311.0m and earnings per share (EPS) of US$1.13 in 2024. The analyst seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.
The consensus price target held steady at UK£13.00, with the analyst seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that M.P. Evans Group's revenue growth is expected to slow, with the forecast 0.2% annualised growth rate until the end of 2024 being well below the historical 24% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 3.8% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than M.P. Evans Group.
The Bottom Line
The most important thing to take away is that the analyst downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at UK£13.00, with the latest estimates not enough to have an impact on their price target.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have analyst estimates for M.P. Evans Group going out as far as 2026, and you can see them free on our platform here.
Don't forget that there may still be risks. For instance, we've identified 1 warning sign for M.P. Evans Group that you should be aware of.
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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.
