Earnings Update: Wynnstay Group Plc Just Reported And Analysts Are Trimming Their Forecasts
Wynnstay Group Plc (LON:WYN) shares fell 3.4% to UK£2.83 in the week since its latest full-year results. Results look mixed - while revenue fell marginally short of analyst estimates at UK£491m, statutory earnings were in line with expectations, at UK£0.31 per share. 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. With this in mind, we've gathered the latest statutory forecasts to see what analysts are expecting for next year.
View our latest analysis for Wynnstay Group
Taking into account the latest results, the current consensus, from the dual analysts covering Wynnstay Group, is for revenues of UK£475.1m in 2020, which would reflect a noticeable 3.2% reduction in Wynnstay Group's sales over the past 12 months. Statutory earnings per share are expected to rise 6.6% to UK£0.33. Before this earnings report, analysts had been forecasting revenues of UK£516.3m and earnings per share (EPS) of UK£0.37 in 2020. Analysts seem less optimistic after the recent results, reducing their sales forecasts and making a real cut to earnings per share forecasts.
It'll come as no surprise then, to learn that analysts have cut their price target 14% to UK£3.30.
Further, we can compare these estimates to past performance, and see how Wynnstay Group forecasts compare to the wider market's forecast performance. We would highlight that sales are expected to reverse, with the forecast 3.2% revenue decline a notable change from historical growth of 5.6% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same market are forecast to see their revenue grow 3.9% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - analysts also expect Wynnstay Group to grow slower than the wider market.
The Bottom Line
The most important thing to take away is that analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Unfortunately, analysts also downgraded their revenue estimates, and our data indicates revenues are expected to perform worse than the wider market. Even so, earnings per share are more important to the intrinsic value of the business. Analysts also downgraded their price target, suggesting that the latest news has led analysts to become more pessimistic about the intrinsic value of the business.
Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. At least one analyst has provided forecasts out to 2021, which can be seen for free on our platform here.
We also provide an overview of the Wynnstay Group Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.
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