Kingfisher plc Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now
Shareholders of Kingfisher plc (LON:KGF) will be pleased this week, given that the stock price is up 11% to UK£2.50 following its latest yearly results. Revenues were in line with forecasts, at UK£13b, although statutory earnings per share came in 17% below what the analysts expected, at UK£0.18 per share. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
View our latest analysis for Kingfisher
Taking into account the latest results, Kingfisher's 13 analysts currently expect revenues in 2025 to be UK£13.0b, approximately in line with the last 12 months. Per-share earnings are expected to jump 38% to UK£0.25. Yet prior to the latest earnings, the analysts had been anticipated revenues of UK£13.2b and earnings per share (EPS) of UK£0.23 in 2025. So the consensus seems to have become somewhat more optimistic on Kingfisher's earnings potential following these results.
The consensus price target was unchanged at UK£2.31, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. 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 Kingfisher analyst has a price target of UK£3.00 per share, while the most pessimistic values it at UK£1.80. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Kingfisher's past performance and to peers in the same industry. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 0.06% by the end of 2025. This indicates a significant reduction from annual growth of 3.2% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 2.4% annually for the foreseeable future. It's pretty clear that Kingfisher's revenues are expected to perform substantially worse 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 Kingfisher following these results. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. 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.
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 Kingfisher going out to 2027, and you can see them free on our platform here.
It is also worth noting that we have found 1 warning sign for Kingfisher 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.
