Yahoo Finance ADF Group Inc. Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year
ADF Group Inc. (TSE:DRX) defied analyst predictions to release its full-year results, which were ahead of market expectations. Results were good overall, with revenues beating analyst predictions by 3.5% to hit CA$331m. Statutory earnings per share (EPS) came in at CA$1.15, some 5.5% above whatthe analyst had expected. 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.
See our latest analysis for ADF Group
Taking into account the latest results, the most recent consensus for ADF Group from one analyst is for revenues of CA$361.5m in 2025. If met, it would imply a decent 9.2% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to expand 13% to CA$1.30. In the lead-up to this report, the analyst had been modelling revenues of CA$360.6m and earnings per share (EPS) of CA$1.09 in 2025. There was no real change to the revenue estimates, but the analyst does seem more bullish on earnings, given the nice gain to earnings per share expectations following these results.
The consensus price target rose 15% to CA$15.00, suggesting that higher earnings estimates flow through to the stock's valuation as well.
Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that ADF Group's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 9.2% growth on an annualised basis. This is compared to a historical growth rate of 16% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 13% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than ADF Group.
The Bottom Line
The most important thing here is that the analyst upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards ADF Group 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. There was also a nice increase in the price target, with the analyst clearly feeling that the intrinsic value of the business is improving.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.
Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.
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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.
