Yahoo Finance Results: STV Group plc Exceeded Expectations And The Consensus Has Updated Its Estimates
STV Group plc (LON:STVG) shareholders are probably feeling a little disappointed, since its shares fell 2.6% to UK£3.44 in the week after its latest yearly results. Revenues were UK£107m, approximately in line with whatthe analysts expected, although statutory earnings per share (EPS) crushed expectations, coming in at UK£0.17, an impressive 34% ahead of estimates. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
Check out our latest analysis for STV Group
Taking into account the latest results, the most recent consensus for STV Group from three analysts is for revenues of UK£126.3m in 2021 which, if met, would be a decent 18% increase on its sales over the past 12 months. Per-share earnings are expected to jump 61% to UK£0.29. Before this earnings report, the analysts had been forecasting revenues of UK£126.3m and earnings per share (EPS) of UK£0.36 in 2021. So there's definitely been a decline in sentiment after the latest results, noting the real cut to new EPS forecasts.
It might be a surprise to learn that the consensus price target was broadly unchanged at UK£4.31, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. 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 STV Group at UK£4.50 per share, while the most bearish prices it at UK£4.07. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.
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. For example, we noticed that STV Group's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 18% growth to the end of 2021 on an annualised basis. That is well above its historical decline of 0.5% a year over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 7.6% annually. Not only are STV Group's revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.
The Bottom Line
The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. 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£4.31, with the latest estimates not enough to have an impact on their price targets.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for STV Group going out to 2023, and you can see them free on our platform here..
You still need to take note of risks, for example - STV Group has 6 warning signs (and 1 which can't be ignored) we think you should know about.
This article by Simply Wall St is general in nature. 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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