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UK£3.13 - That's What Analysts Think Crest Nicholson Holdings plc (LON:CRST) Is Worth After These Results

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Simply Wall St
·3-min read
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It's been a good week for Crest Nicholson Holdings plc (LON:CRST) shareholders, because the company has just released its latest annual results, and the shares gained 6.6% to UK£3.29. Revenues came in at UK£678m, in line with forecasts and the company reported a statutory loss of UK£0.042 per share, roughly in line with expectations. 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 Crest Nicholson Holdings after the latest results.

View our latest analysis for Crest Nicholson Holdings

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Taking into account the latest results, Crest Nicholson Holdings' nine analysts currently expect revenues in 2021 to be UK£677.9m, approximately in line with the last 12 months. Earnings are expected to improve, with Crest Nicholson Holdings forecast to report a statutory profit of UK£0.21 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of UK£770.6m and earnings per share (EPS) of UK£0.22 in 2021. It looks like sentiment has fallen somewhat in the aftermath of these results, with a real cut to revenue estimates and a small dip in earnings per share numbers as well.

What's most unexpected is that the consensus price target rose 8.7% to UK£3.13, strongly implying the downgrade to forecasts is not expected to be more than a temporary blip.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Crest Nicholson Holdings' past performance and to peers in the same industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Crest Nicholson Holdings. Unfortunately, they also downgraded their revenue estimates, and our data indicates revenues are expected to perform worse than the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for Crest Nicholson Holdings going out to 2023, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 1 warning sign for Crest Nicholson Holdings you should be aware of.

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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