Alfa Financial Software Holdings PLC (LON:ALFA) Full-Year Results Just Came Out: Here's What Analysts Are Forecasting For This Year
Last week saw the newest annual earnings release from Alfa Financial Software Holdings PLC (LON:ALFA), an important milestone in the company's journey to build a stronger business. The result was positive overall - although revenues of UK£102m were in line with what the analysts predicted, Alfa Financial Software Holdings surprised by delivering a statutory profit of UK£0.079 per share, modestly greater than expected. 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 Alfa Financial Software Holdings
After the latest results, the three analysts covering Alfa Financial Software Holdings are now predicting revenues of UK£107.3m in 2024. If met, this would reflect a reasonable 5.2% improvement in revenue compared to the last 12 months. Statutory earnings per share are forecast to reduce 9.8% to UK£0.072 in the same period. Before this earnings report, the analysts had been forecasting revenues of UK£105.4m and earnings per share (EPS) of UK£0.072 in 2024. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
There were no changes to revenue or earnings estimates or the price target of UK£2.20, suggesting that the company has met expectations in its recent result. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Alfa Financial Software Holdings analyst has a price target of UK£2.40 per share, while the most pessimistic values it at UK£2.10. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Alfa Financial Software Holdings is an easy business to forecast or the the analysts are all using similar assumptions.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's pretty clear that there is an expectation that Alfa Financial Software Holdings' revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 5.2% growth on an annualised basis. This is compared to a historical growth rate of 9.2% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 10.0% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Alfa Financial Software Holdings.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Alfa Financial Software Holdings' revenue is expected to perform worse than the wider industry. The consensus price target held steady at UK£2.20, with the latest estimates not enough to have an impact on their price targets.
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 Alfa Financial Software Holdings going out to 2026, and you can see them free on our platform here..
It is also worth noting that we have found 2 warning signs for Alfa Financial Software Holdings (1 is a bit concerning!) 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.
