Urban&Civic plc (LON:UANC) 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 a curious result overall, with revenues coming in an incredible 39% below what analysts had expected, at UK£102m. Earnings per share beat analyst models by 91% to hit UK£0.086. 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. So we gathered the latest post-earnings forecasts to see what analysts are forecasting for next year.
After the latest results, the only analyst covering Urban&Civic are now predicting revenues of UK£169.0m in 2020. If met, this would reflect a major 66% improvement in sales compared to the last 12 months. Earnings per share are forecast to dive 28% to UK£0.063 in the same period. Before this earnings report, analysts had been forecasting revenues of UK£168.5m and earnings per share (EPS) of UK£0.063 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 UK£3.90, suggesting that the company has met expectations in its recent result.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's clear from the latest estimates that Urban&Civic's rate of growth is expected to accelerate meaningfully, with forecast 66% revenue growth noticeably faster than its historical growth of 21%p.a. over the past five years. Compare this with other companies in the same market, which are forecast to grow their revenue 1.0% next year. It seems obvious that, while the growth outlook is brighter than the recent past, analysts also expect Urban&Civic to grow faster than 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. Happily, there were no major changes to revenue forecasts, with analysts still expecting the business to grow faster than 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.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2021, which can be seen for free on our platform here.
You can also see whether Urban&Civic is carrying too much debt, and whether its balance sheet is healthy, for free on our platform here.
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