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IVE Group Limited (ASX:IGL) came out with its full-year results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. Results were roughly in line with estimates, with revenues of AU$973m and statutory earnings per share of AU$0.18. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
View our latest analysis for IVE Group
After the latest results, the twin analysts covering IVE Group are now predicting revenues of AU$998.3m in 2025. If met, this would reflect a reasonable 2.6% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to shoot up 51% to AU$0.27. Before this earnings report, the analysts had been forecasting revenues of AU$1.02b and earnings per share (EPS) of AU$0.29 in 2025. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a small dip in their earnings per share forecasts.
The consensus price target held steady at AU$2.60, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the IVE Group's past performance and to peers in the same industry. It's pretty clear that there is an expectation that IVE Group's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 2.6% growth on an annualised basis. This is compared to a historical growth rate of 8.8% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 2.0% annually. So it's pretty clear that, while IVE Group's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.
The Bottom Line
The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. 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.