FD Technologies plc (LON:FDP) Just Reported Half-Year Earnings: Have Analysts Changed Their Mind On The Stock?
There's been a major selloff in FD Technologies plc (LON:FDP) shares in the week since it released its interim report, with the stock down 33% to UK£8.62. It was a negative result overall, with revenues coming in 10% less than what the analysts expected, at UK£142m. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on FD Technologies after the latest results.
Check out our latest analysis for FD Technologies
Taking into account the latest results, the most recent consensus for FD Technologies from three analysts is for revenues of UK£307.1m in 2024. If met, it would imply a credible 5.5% increase on its revenue over the past 12 months. FD Technologies is also expected to turn profitable, with statutory earnings of UK£0.30 per share. Before this earnings report, the analysts had been forecasting revenues of UK£320.2m and earnings per share (EPS) of UK£0.23 in 2024. Although the analysts have lowered their revenue forecasts, they've also made a great increase in their earnings per share estimates, which implies there's been something of an uptick in sentiment following the latest results.
The consensus has made no major changes to the price target of UK£26.50, suggesting the forecast improvement in earnings is expected to offset the decline in revenues next year. 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. The most optimistic FD Technologies analyst has a price target of UK£35.00 per share, while the most pessimistic values it at UK£20.00. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.
Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting FD Technologies' growth to accelerate, with the forecast 11% annualised growth to the end of 2024 ranking favourably alongside historical growth of 7.1% 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 8.0% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect FD Technologies to grow faster than the wider industry.
The Bottom Line
The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards FD Technologies following these results. They also downgraded FD Technologies' revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. Still, earnings are more important to the intrinsic value of the business. 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. We have estimates - from multiple FD Technologies analysts - going out to 2026, and you can see them free on our platform here.
It is also worth noting that we have found 1 warning sign for FD Technologies that you need to take into consideration.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
