It's been a good week for Euromoney Institutional Investor PLC (LON:ERM) shareholders, because the company has just released its latest annual results, and the shares gained 4.4% to UK£10.40. Revenues were UK£335m, approximately in line with whatthe analysts expected, although statutory earnings per share (EPS) crushed expectations, coming in at UK£0.29, an impressive 35% ahead of estimates. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for Euromoney Institutional Investor

Taking into account the latest results, the six analysts covering Euromoney Institutional Investor provided consensus estimates of UK£326.1m revenue in 2021, which would reflect a small 2.7% decline on its sales over the past 12 months. Statutory earnings per share are expected to plunge 21% to UK£0.23 in the same period. In the lead-up to this report, the analysts had been modelling revenues of UK£324.2m and earnings per share (EPS) of UK£0.22 in 2021. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

The analysts reconfirmed their price target of UK£10.78, showing that the business is executing well and in line with expectations. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Euromoney Institutional Investor at UK£12.50 per share, while the most bearish prices it at UK£8.20. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would also point out that the forecast 2.7% revenue decline is better than the historical trend, which saw revenues shrink 6.5% annually over the past five years

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply revenues will perform worse than the wider industry. The consensus price target held steady at UK£10.78, with the latest estimates not enough to have an impact on their price targets.