RELX PLC (LON:REL) Yearly Results Just Came Out: Here's What Analysts Are Forecasting For This Year
The full-year results for RELX PLC (LON:REL) were released last week, making it a good time to revisit its performance. Revenues of UK£9.2b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at UK£0.94, missing estimates by 4.0%. 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.
Check out our latest analysis for RELX
Following the latest results, RELX's 13 analysts are now forecasting revenues of UK£9.71b in 2024. This would be a modest 6.0% improvement in revenue compared to the last 12 months. Per-share earnings are expected to grow 13% to UK£1.07. Before this earnings report, the analysts had been forecasting revenues of UK£9.76b and earnings per share (EPS) of UK£1.07 in 2024. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
The analysts reconfirmed their price target of UK£36.20, showing that the business is executing well and in line with expectations. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values RELX at UK£41.00 per share, while the most bearish prices it at UK£32.50. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's clear from the latest estimates that RELX's rate of growth is expected to accelerate meaningfully, with the forecast 6.0% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 3.8% p.a. over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 5.8% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that RELX is expected to grow at about the same rate as the wider industry.
The Bottom Line
The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall 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.
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 forecasts for RELX going out to 2026, and you can see them free on our platform here.
However, before you get too enthused, we've discovered 1 warning sign for RELX that you should be aware of.
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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.
