Vertu Motors plc (LON:VTU) last week reported its latest annual results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. It was an okay result overall, with revenues coming in at UK£3.1b, roughly what the analysts had been expecting. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
Following last week's earnings report, Vertu Motors' twin analysts are forecasting 2021 revenues to be UK£3.07b, approximately in line with the last 12 months. Prior to the latest earnings, the analysts were forecasting revenues of UK£3.16b in 2021, and did not provide an earnings per share estimate. It looks like the analysts have become a bit less bullish on Vertu Motors, given the revenue estimates after the latest results.
There's been no real change to the consensus price target of UK£0.50, with Vertu Motors seemingly executing in line with expectations.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Vertu Motors' past performance and to peers in the same industry. It's pretty clear that there is an expectation that Vertu Motors' revenue growth will slow down substantially, with revenues next year expected to grow 0.1%, compared to a historical growth rate of 7.0% 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 3.9% next year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Vertu Motors.
The Bottom Line
The most important thing to take away is that the analysts downgraded their revenue estimates for next year. Unfortunately, they also downgraded their revenue estimates, and our data indicates revenues are expected to perform worse than the wider industry. The consensus price target held steady at UK£0.50, with the latest estimates not enough to have an impact on their price targets.
We have estimates for Vertu Motors from its twin analysts out to 2022, and you can see them free on our platform here.
Don't forget that there may still be risks. For instance, we've identified 3 warning signs for Vertu Motors that you should be aware of.
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