Investors in IntegraFin Holdings plc (LON:IHP) had a good week, as its shares rose 9.4% to close at UK£4.60 following the release of its yearly results. IntegraFin Holdings reported UK£99m in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of UK£0.12 beat expectations, being 6.1% higher than what analysts expected. Earnings are an important time for investors, as they can track a company's performance, look at what top analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We thought readers would find it interesting to see analysts' latest (statutory) post-earnings forecasts for next year.
Following the latest results, IntegraFin Holdings's seven analysts are now forecasting revenues of UK£111.0m in 2020. This would be a decent 12% improvement in sales compared to the last 12 months. Statutory earnings per share are expected to ascend 15% to UK£0.14. In the lead-up to this report, analysts had been modelling revenues of UK£111.3m and earnings per share (EPS) of UK£0.13 in 2020. Analysts seem to have become more bullish on the business, judging by their new earnings per share estimates.
The consensus price target rose 7.1% to UK£4.48, suggesting that higher earnings estimates flow through to the stock's valuation as well. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic IntegraFin Holdings analyst has a price target of UK£4.90 per share, while the most pessimistic values it at UK£3.90. Still, with such a tight range of estimates, it suggests analysts have a pretty good idea of what they think the company is worth.
In addition, we can look to IntegraFin Holdings's past performance and see whether business is expected to improve, and if the company is expected to perform better than wider market. We can infer from the latest estimates that analysts are expecting a continuation of IntegraFin Holdings's historical trends, as next year's forecast 12% revenue growth is roughly in line with 10% annual revenue growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 6.1% per year. So it's pretty clear that IntegraFin Holdings is forecast to grow substantially faster than its market.
The Bottom Line
The most important thing to take away from this is that analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards IntegraFin Holdings following these results. Fortunately, analysts also reconfirmed their revenue estimates, suggesting sales are tracking in line with expectations - and our data does suggest that IntegraFin Holdings's revenues are expected to grow faster than the wider market. Analysts also upgraded their price target, suggesting that analysts believe the intrinsic value of the business is likely to improve over time.
Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. At Simply Wall St, we have a full range of analyst estimates for IntegraFin Holdings going out to 2024, and you can see them free on our platform here..
We also provide an overview of the IntegraFin Holdings Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
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