AFH Financial Group Plc Released Earnings Last Week And Analysts Lifted Their Price Target To UK£5.70
AFH Financial Group Plc (LON:AFHP) last week reported its latest yearly results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. It was an okay report, and revenues came in at UK£74m, approximately in line with analyst estimates leading up to the results announcement. 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've gathered the most recent statutory forecasts to see whether analysts have changed their earnings models, following these results.
Check out our latest analysis for AFH Financial Group
After the latest results, the two analysts covering AFH Financial Group are now predicting revenues of UK£86.9m in 2020. If met, this would reflect a solid 17% improvement in sales compared to the last 12 months. Before this earnings result, analysts had predicted UK£86.5m revenue in 2020, although there was no accompanying EPS estimate. Overall it looks like AFH Financial Group 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.
Additionally, the consensus price target for AFH Financial Group 8.1% to UK£5.70, showing a clear increase in optimism from the analysts involved.
It can be useful to take a broader overview by seeing how analyst forecasts compare, both to the AFH Financial Group's past performance and to peers in the same market. We would highlight that AFH Financial Group's revenue growth is expected to slow, with forecast 17% increase next year well below the historical 32%p.a. growth over the last five years. By way of comparison, other companies in this market with analyst coverage, are forecast to grow their revenue at 6.1% next year. Even after the forecast slowdown in growth, it seems obvious that analysts still thinkAFH Financial Group will grow faster than the wider market.
The Bottom Line
Probably the biggest thing to take away from these latest forecasts is that brokers are definitely optimistic on the business, given the forecast for profitability next year. Happily, there were no major changes to revenue forecasts, with analysts still expecting the business 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.
At least one of AFH Financial Group's two analysts has provided estimates out to 2022, which can be seen for free on our platform here.
You can also view our analysis of AFH Financial Group's balance sheet, and whether we think AFH Financial Group is carrying too much debt, for free on our platform here.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.
