Yahoo Finance Analyst Estimates: Here's What Brokers Think Of Moneysupermarket.com Group PLC (LON:MONY) After Its Yearly Report
It's been a good week for Moneysupermarket.com Group PLC (LON:MONY) shareholders, because the company has just released its latest full-year results, and the shares gained 7.0% to UK£2.86. Moneysupermarket.com Group reported UK£345m in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of UK£0.13 beat expectations, being 3.0% higher than what the analysts expected. Following the result, the analysts have 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Check out our latest analysis for Moneysupermarket.com Group
Taking into account the latest results, the consensus forecast from Moneysupermarket.com Group's eight analysts is for revenues of UK£361.4m in 2021, which would reflect a reasonable 4.8% improvement in sales compared to the last 12 months. Per-share earnings are expected to rise 8.5% to UK£0.14. Before this earnings report, the analysts had been forecasting revenues of UK£367.6m and earnings per share (EPS) of UK£0.15 in 2021. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a minor downgrade to their earnings per share forecasts.
It might be a surprise to learn that the consensus price target was broadly unchanged at UK£3.20, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on 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 Moneysupermarket.com Group at UK£4.00 per share, while the most bearish prices it at UK£2.40. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Moneysupermarket.com Group's past performance and to peers in the same industry. We can infer from the latest estimates that forecasts expect a continuation of Moneysupermarket.com Group'shistorical trends, as next year's 4.8% revenue growth is roughly in line with 5.4% annual revenue growth over the past five years. Compare this with the wider industry (in aggregate), which analyst estimates suggest will see revenues grow 17% next year. So it's pretty clear that Moneysupermarket.com Group is expected to grow slower than similar companies in the same industry.
The Bottom Line
The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting sales are tracking in line with expectations - although our data does suggest that Moneysupermarket.com Group's revenues are expected to perform worse than the wider industry. The consensus price target held steady at UK£3.20, with the latest estimates not enough to have an impact on their price targets.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Moneysupermarket.com Group going out to 2025, and you can see them free on our platform here..
You should always think about risks though. Case in point, we've spotted 1 warning sign for Moneysupermarket.com Group you should be aware of.
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
