Yahoo Finance Intermediate Capital Group plc Just Recorded A 18% EPS Beat: Here's What Analysts Are Forecasting Next
Last week saw the newest yearly earnings release from Intermediate Capital Group plc (LON:ICG), an important milestone in the company's journey to build a stronger business. Revenues were UK£905m, approximately in line with expectations, although statutory earnings per share (EPS) performed substantially better. EPS of UK£1.62 were also better than expected, beating analyst predictions by 18%. The analysts 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. 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 Intermediate Capital Group
After the latest results, the eleven analysts covering Intermediate Capital Group are now predicting revenues of UK£1.00b in 2025. If met, this would reflect a solid 11% improvement in revenue compared to the last 12 months. Statutory earnings per share are expected to dip 4.6% to UK£1.55 in the same period. In the lead-up to this report, the analysts had been modelling revenues of UK£985.2m and earnings per share (EPS) of UK£1.52 in 2025. So the consensus seems to have become somewhat more optimistic on Intermediate Capital Group's earnings potential following these results.
There's been no major changes to the consensus price target of UK£24.31, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Intermediate Capital Group at UK£30.36 per share, while the most bearish prices it at UK£16.00. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.
Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that Intermediate Capital Group's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 11% growth on an annualised basis. This is compared to a historical growth rate of 15% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 4.8% annually. So it's pretty clear that, while Intermediate Capital Group's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.
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 Intermediate Capital Group following these results. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
With that in mind, we wouldn't be too quick to come to a conclusion on Intermediate Capital Group. Long-term earnings power is much more important than next year's profits. We have forecasts for Intermediate Capital Group going out to 2027, and you can see them free on our platform here.
That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with Intermediate Capital Group , and understanding this should be part of your investment process.
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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.
