Yahoo Finance Science in Sport plc (LON:SIS) Analysts Are Pretty Bullish On The Stock After Recent Results
Shareholders might have noticed that Science in Sport plc (LON:SIS) filed its annual result this time last week. The early response was not positive, with shares down 8.2% to UK£0.56 in the past week. It was a pretty bad result overall; while revenues were in line with expectations at UK£63m, statutory losses exploded to UK£0.05 per share. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Science in Sport after the latest results.
See our latest analysis for Science in Sport
Taking into account the latest results, the consensus forecast from Science in Sport's dual analysts is for revenues of UK£75.0m in 2022, which would reflect a meaningful 20% improvement in sales compared to the last 12 months. Per-share losses are supposed to see a sharp uptick, reaching UK£0.059. Before this earnings announcement, the analysts had been modelling revenues of UK£75.1m and losses of UK£0.059 per share in 2022.
The consensus price target rose 9.4% to UK£0.88, with the analysts increasing their valuations as the business executes in line with forecasts.
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 Science in Sport's revenue growth is expected to slow, with the forecast 20% annualised growth rate until the end of 2022 being well below the historical 33% 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 4.0% annually. Even after the forecast slowdown in growth, it seems obvious that Science in Sport is also expected to grow faster than the wider industry.
The Bottom Line
The most important thing to take away is that the analysts reconfirmed their loss per share estimates for next year. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for Science in Sport going out as far as 2024, and you can see them free on our platform here.
And what about risks? Every company has them, and we've spotted 2 warning signs for Science in Sport you should know about.
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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.
