Yahoo Finance Analyst Estimates: Here's What Brokers Think Of Shaftesbury PLC (LON:SHB) After Its Full-Year Report
Last week, you might have seen that Shaftesbury PLC (LON:SHB) released its annual result to the market. The early response was not positive, with shares down 2.8% to UK£5.40 in the past week. Results overall weren't great; even though revenues of UK£125m beat expectations by 13%, statutory losses ballooned to UK£2.28 per share, substantially worse than the analysts had expected. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
View our latest analysis for Shaftesbury
After the latest results, the consensus from Shaftesbury's six analysts is for revenues of UK£120.7m in 2021, which would reflect a discernible 3.0% decline in sales compared to the last year of performance. The loss per share is expected to greatly reduce in the near future, narrowing 76% to UK£0.55. Before this earnings announcement, the analysts had been modelling revenues of UK£119.2m and losses of UK£0.45 per share in 2021. While this year's revenue estimates held steady, there was also a loss per share expectations, suggesting the consensus has a bit of a mixed view on the stock.
As a result, there was no major change to the consensus price target of UK£5.52, with the analysts implicitly confirming that the business looks to be performing in line with expectations, despite higher forecast losses. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Shaftesbury, with the most bullish analyst valuing it at UK£9.00 and the most bearish at UK£4.35 per share. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that sales are expected to reverse, with the forecast 3.0% revenue decline a notable change from historical growth of 5.2% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 6.6% next year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Shaftesbury is expected to lag the wider industry.
The Bottom Line
The most important thing to take away is that the analysts increased their loss per share estimates for next year. On the plus side, there were no major changes to revenue estimates; although forecasts imply revenues will perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Shaftesbury going out to 2023, and you can see them free on our platform here..
Even so, be aware that Shaftesbury is showing 2 warning signs in our investment analysis , and 1 of those is a bit unpleasant...
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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