Leon's Furniture Limited (TSE:LNF) came out with its annual results last week, and we wanted to see how the business is performing and what top analysts think of the company following this report. It was an okay result overall, with revenues coming in at CA$2.3b, roughly what 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 top analysts are forecasting for next year, and see if there has been any change to expectations for the business. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Taking into account the latest results, the most recent consensus for Leon's Furniture from one analyst is for revenues of CA$2.33b in 2020, which is a credible 2.1% increase on its sales over the past 12 months. Before this earnings result, analysts had predicted CA$2.33b revenue in 2020, although there was no accompanying EPS estimate. Overall it looks like Leon's Furniture is performing in line with analyst expectations, given analysts have updated their numbers and there's been no real change to next year's forecast following these results.
There's been no real change to the consensus price target of CA$18.00, with Leon's Furnitureseemingly executing in line with expectations.
It can also be useful to step back and take a broader view of how analyst forecasts compare to Leon's Furniture's performance in recent years. It's pretty clear that analysts expect Leon's Furniture's revenue growth will slow down substantially, with revenues next year expected to grow 2.1%, compared to a historical growth rate of 2.7% over the past five years. Compare this against other companies (with analyst forecasts) in the market, which are in aggregate expected to see revenue growth of 4.8% next year. So it's pretty clear that, while revenue growth is expected to slow down, analysts still expect the wider market to grow faster than Leon's Furniture.
The Bottom Line
The biggest takeaway for us from these new estimates is the bullish forecast for profits next year. Fortunately, analysts also reconfirmed their revenue estimates, suggesting sales are tracking in line with expectations - although our data does suggest that Leon's Furniture's revenues are expected to perform worse than the wider market. 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.
One Leon's Furniture broker/analyst has provided estimates out to 2021, which can be seen for free on our platform here.
We also provide an overview of the Leon's Furniture Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.
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