Johns Lyng Group Limited Just Reported Half-Year Earnings: Have Analysts Changed Their Mind On The Stock?
There's been a notable change in appetite for Johns Lyng Group Limited (ASX:JLG) shares in the week since its half-yearly report, with the stock down 11% to AU$2.46. It was an okay report, and revenues came in at AU$234m, approximately in line with analyst estimates leading up to the results announcement. This is an important time for investors, as they can track a company's performance in its report, look at what top analysts are forecasting for next year, and see if there has been any change to expectations for the business. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
See our latest analysis for Johns Lyng Group
After the latest results, the five analysts covering Johns Lyng Group are now predicting revenues of AU$444.2m in 2020. If met, this would reflect a modest 6.7% improvement in sales compared to the last 12 months. Statutory earnings per share are expected to bounce 21% to AU$0.074. Yet prior to the latest earnings, analysts had been forecasting revenues of AU$437.6m and earnings per share (EPS) of AU$0.075 in 2020. So it's pretty clear that, although analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
There were no changes to revenue or earnings estimates or the price target of AU$2.71, suggesting that the company has met expectations in its recent result. The consensus price target just an average of individual analyst targets, so - considering that the price target changed, it would be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Johns Lyng Group at AU$3.07 per share, while the most bearish prices it at AU$2.35. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or that analysts have a clear view on its prospects.
It can also be useful to step back and take a broader view of how analyst forecasts compare to Johns Lyng Group's performance in recent years. We would highlight that Johns Lyng Group's revenue growth is expected to slow, with forecast 6.7% increase next year well below the historical 41%p.a. growth over the last year. Juxtapose this against the other companies in the market with analyst coverage, which are forecast to grow their revenues (in aggregate) 7.5% next year. Factoring in the forecast slowdown in growth, it looks like analysts are expecting Johns Lyng Group to grow at about the same rate as the wider market.
The Bottom Line
The most obvious conclusion from these results is that there's been no major change in the business' prospects in recent times, with analysts holding earnings per share steady, in line with previous estimates. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider market. 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.
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 Johns Lyng Group going out to 2023, and you can see them free on our platform here..
You can also see our analysis of Johns Lyng Group's Board and CEO remuneration and experience, and whether company insiders have been buying stock.
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.
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