Yahoo Finance Broker Revenue Forecasts For Workspace Group plc (LON:WKP) Are Surging Higher
Celebrations may be in order for Workspace Group plc (LON:WKP) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The analysts have sharply increased their revenue numbers, with a view that Workspace Group will make substantially more sales than they'd previously expected.
After the upgrade, the consensus from Workspace Group's five analysts is for revenues of UK£117m in 2022, which would reflect a definite 9.0% decline in sales compared to the last year of performance. Losses are expected to turn into profits real soon, with the analysts forecasting UK£0.41 in per-share earnings. Previously, the analysts had been modelling revenues of UK£96m and earnings per share (EPS) of UK£0.41 in 2022. There's clearly been a surge in bullishness around the company's sales pipeline, even if there's no real change in earnings per share forecasts.
Check out our latest analysis for Workspace Group
Even though revenue forecasts increased, there was no change to the consensus price target of UK£9.09, suggesting the analysts are focused on earnings as the driver of value creation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Workspace Group at UK£10.50 per share, while the most bearish prices it at UK£6.70. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that sales are expected to reverse, with a forecast 17% annualised revenue decline to the end of 2022. That is a notable change from historical growth of 6.3% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 6.7% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Workspace Group is expected to lag the wider industry.
The Bottom Line
The most obvious conclusion from this consensus update is that there's been no major change in the business' prospects in recent times, with analysts holding earnings per share steady, in line with previous estimates. Pleasantly, analysts also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow slower than the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Workspace Group.
Still, the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Workspace Group analysts - going out to 2024, and you can see them free on our platform here.
Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies that insiders are buying.
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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.
