Yahoo Finance Cornerstone FS plc Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next
There's been a notable change in appetite for Cornerstone FS plc (LON:CSFS) shares in the week since its yearly report, with the stock down 10% to UK£0.35. Revenues were UK£9.6m, approximately in line with whatthe analyst expected, although statutory earnings per share (EPS) crushed expectations, coming in at UK£0.038, an impressive 318% ahead of estimates. The analyst typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we gathered the latest post-earnings forecasts to see what estimate suggests is in store for next year.
Check out our latest analysis for Cornerstone FS
Following the latest results, Cornerstone FS' one analyst are now forecasting revenues of UK£11.5m in 2024. This would be a decent 19% improvement in revenue compared to the last 12 months. Statutory earnings per share are forecast to plummet 52% to UK£0.018 in the same period. In the lead-up to this report, the analyst had been modelling revenues of UK£11.4m and earnings per share (EPS) of UK£0.013 in 2024. Although the revenue estimates have not really changed, we can see there's been a sizeable expansion in earnings per share expectations, suggesting that the analyst has become more bullish after the latest result.
The analyst has been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 40% to UK£0.70.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that Cornerstone FS' revenue growth is expected to slow, with the forecast 19% annualised growth rate until the end of 2024 being well below the historical 45% p.a. growth over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue shrink 9.6% per year. So it's clear that despite the slowdown in growth, Cornerstone FS is still expected to grow meaningfully faster than the wider industry.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Cornerstone FS' earnings potential next year. On the plus side, they made no changes to their revenue estimates - and they expect it to perform better than the wider industry. There was also a nice increase in the price target, with the analyst clearly feeling that the intrinsic value of the business is improving.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for Cornerstone FS going out as far as 2026, and you can see them free on our platform here.
It is also worth noting that we have found 3 warning signs for Cornerstone FS (1 is potentially serious!) that you need to take into consideration.
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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.
