Yahoo Finance Analyst Estimates: Here's What Brokers Think Of Eagers Automotive Limited (ASX:APE) After Its Full-Year Report
Eagers Automotive Limited (ASX:APE) shareholders are probably feeling a little disappointed, since its shares fell 4.2% to AU$13.99 in the week after its latest annual results. Revenues of AU$9.9b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at AU$1.11, missing estimates by 2.1%. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
View our latest analysis for Eagers Automotive
Following the latest results, Eagers Automotive's 15 analysts are now forecasting revenues of AU$11.0b in 2024. This would be a decent 11% improvement in revenue compared to the last 12 months. Statutory per-share earnings are expected to be AU$1.11, roughly flat on the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of AU$10.8b and earnings per share (EPS) of AU$1.08 in 2024. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.
The consensus price target was unchanged at AU$14.48, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. 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. The most optimistic Eagers Automotive analyst has a price target of AU$16.50 per share, while the most pessimistic values it at AU$10.80. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Eagers Automotive shareholders.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Eagers Automotive's past performance and to peers in the same industry. The period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 11% growth on an annualised basis. That is in line with its 13% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 7.1% per year. So it's pretty clear that Eagers Automotive is forecast to grow substantially faster than its industry.
The Bottom Line
The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Eagers Automotive following these results. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at AU$14.48, 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 Eagers Automotive going out to 2026, and you can see them free on our platform here..
It is also worth noting that we have found 2 warning signs for Eagers Automotive that you need to take into consideration.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.