Analysts Have Made A Financial Statement On Aston Martin Lagonda Global Holdings plc's (LON:AML) Half-Yearly Report
Investors in Aston Martin Lagonda Global Holdings plc (LON:AML) had a good week, as its shares rose 4.5% to close at UK£1.60 following the release of its half-year results. The results were positive, with revenue coming in at UK£603m, beating analyst expectations by 8.5%. 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.
See our latest analysis for Aston Martin Lagonda Global Holdings
Following the latest results, Aston Martin Lagonda Global Holdings' nine analysts are now forecasting revenues of UK£1.79b in 2024. This would be a notable 15% improvement in revenue compared to the last 12 months. Losses are predicted to fall substantially, shrinking 44% to UK£0.20. Yet prior to the latest earnings, the analysts had been forecasting revenues of UK£1.77b and losses of UK£0.20 per share in 2024. It looks like there's been a modest increase in sentiment in the recent updates, with the analysts becoming a bit more optimistic in their predictions for losses per share, even though the revenue numbers were unchanged.
There's been no major changes to the consensus price target of UK£2.47, suggesting that reduced loss estimates are not enough to have a long-term positive impact on the stock's valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Aston Martin Lagonda Global Holdings analyst has a price target of UK£3.89 per share, while the most pessimistic values it at UK£1.55. 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.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Aston Martin Lagonda Global Holdings' past performance and to peers in the same industry. The analysts are definitely expecting Aston Martin Lagonda Global Holdings' growth to accelerate, with the forecast 32% annualised growth to the end of 2024 ranking favourably alongside historical growth of 15% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 2.6% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Aston Martin Lagonda Global Holdings is expected to grow much faster than its industry.
The Bottom Line
The most obvious conclusion is that the analysts made no changes to their forecasts for a loss next year. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at UK£2.47, with the latest estimates not enough to have an impact on their price targets.
With that in mind, we wouldn't be too quick to come to a conclusion on Aston Martin Lagonda Global Holdings. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Aston Martin Lagonda Global Holdings going out to 2026, and you can see them free on our platform here..
Before you take the next step you should know about the 3 warning signs for Aston Martin Lagonda Global Holdings that we have uncovered.
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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.
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