Shift Group Co., Ltd. (NASDAQ:SHYF) investors will be pleased to see that the company delivered some strong results in its latest financial results. Overall performance was strong, with sales of $198 million, which exceeded analyst expectations by 7.4%. The increase in revenue also led to a significant decline in statutory losses to US$0.14 per share, 7.4% lower than analysts' expectations. Analysts typically update their forecasts with each earnings report, and we can use their forecasts to determine whether their view of the company has changed or if there are any new concerns to be aware of. . We've collected the latest statutory forecasts to see if the analysts have changed their earnings model following these results.
Check out our latest analysis for Shift Group.
Taking into account the latest results, the latest consensus for Shift Group from 4 analysts is for revenue of US$862.1m in 2024. If this were met, it would mean that earnings would have grown by 4.3% in the last 12 months. Statutory earnings per share are expected to increase by 5,702% to US$0.20. Ahead of this report, analysts had been modeling 2024 revenue of US$864m and earnings per share (EPS) of US$0.19. Analysts appear to be more bullish on the business, judging by his new earnings per share. Share estimate.
The consensus price target remains unchanged at US$13.00, suggesting that the improved earnings outlook is not expected to have a long-term impact on shareholder value creation. However, it is unwise to stick to a single price target, as the consensus target is effectively an average of analyst price targets. As a result, some investors like to look at a range of estimates to see if there is any disagreement regarding a company's valuation. Currently, the most bullish analyst values Shift Group's stock at $15.00 per share, while the most bearish values it at $12.00. With such a narrow range of valuations, it seems like the analysts share a similar view on the value of the business.
You can also look at the bigger picture, including how these forecasts compare to past performance and whether forecasts are more or less bullish compared to other companies in its industry. We would like to emphasize that Shift Group's revenue growth is expected to slow, with an expected annual growth rate of 5.8% to the end of 2024, which is significantly lower than the historical annual growth rate of 11% over the past five years. think. For comparison, other companies in the industry that are covered by analysts are expected to grow their revenue at 3.5% per year. It's clear that despite the expected slowdown in growth, Shift Group is also expected to grow faster than the industry as a whole.
conclusion
The biggest takeaway for us is the consensus earnings per share improvement, suggesting a clear improvement in sentiment around Shift Group's earnings potential next year. Fortunately, there are no major changes to revenue forecasts, and the business is still expected to grow faster than the broader industry. The consensus price target is stable at US$13.00, and the latest forecast is not significant enough to impact the price target.
That said, the long-term trajectory of the company's earnings is far more important than next year. His forecasts for Shift Group to 2026 are available for free on this platform.
That being said, you still need to consider the ever-present concern of investment risk. We've identified 2 warning signs for you Understanding these should be part of your investment process.
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This article by Simply Wall St is general in nature. We provide commentary using only unbiased methodologies, based on historical data and analyst forecasts, and articles are not intended to be financial advice. This is not a recommendation to buy or sell any stock, and does not take into account your objectives or financial situation. We aim to provide long-term, focused analysis based on fundamental data. Note that our analysis may not factor in the latest announcements or qualitative material from price-sensitive companies. Simply Wall St has no position in any stocks mentioned.
