Yahoo Finance Revenue Beat: Man Group plc Exceeded Revenue Forecasts By 6.4% And Analysts Are Updating Their Estimates
Man Group plc (LON:EMG) came out with its yearly results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. Results overall were respectable, with statutory earnings of US$0.093 per share roughly in line with what the analysts had forecast. Revenues of US$939m came in 6.4% ahead of analyst predictions. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Man Group after the latest results.
View our latest analysis for Man Group
Following the latest results, Man Group's eleven analysts are now forecasting revenues of US$1.09b in 2021. This would be a notable 16% improvement in sales compared to the last 12 months. Per-share earnings are expected to soar 57% to US$0.15. In the lead-up to this report, the analysts had been modelling revenues of US$1.08b and earnings per share (EPS) of US$0.14 in 2021. So the consensus seems to have become somewhat more optimistic on Man Group's earnings potential following these results.
There's been no major changes to the consensus price target of US$2.39, suggesting that the improved earnings per share outlook is 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 Man Group analyst has a price target of US$2.39 per share, while the most pessimistic values it at US$1.25. 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. The analysts are definitely expecting Man Group's growth to accelerate, with the forecast 16% annualised growth to the end of 2021 ranking favourably alongside historical growth of 1.2% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 3.2% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Man Group to grow 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 Man Group's earnings potential next year. 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.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Man Group going out to 2023, and you can see them free on our platform here..
It is also worth noting that we have found 2 warning signs for Man Group that you need to take into consideration.
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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