In This Article:
One of the biggest stories of last week was how Endava plc (NYSE:DAVA) shares plunged 24% in the week since its latest quarterly results, closing yesterday at US$26.02. Revenues were UK£196m, approximately in line with whatthe analysts expected, although statutory earnings per share (EPS) crushed expectations, coming in at UK£0.11, an impressive 42% ahead of estimates. This is an important time for investors, as they can track a company's performance in its report, look at what experts 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.
View our latest analysis for Endava
After the latest results, the twelve analysts covering Endava are now predicting revenues of UK£797.1m in 2025. If met, this would reflect an okay 5.0% improvement in revenue compared to the last 12 months. Per-share earnings are expected to leap 321% to UK£0.39. Before this earnings report, the analysts had been forecasting revenues of UK£805.1m and earnings per share (EPS) of UK£0.40 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 minor downgrade to their earnings per share forecasts.
It might be a surprise to learn that the consensus price target was broadly unchanged at US$37.73, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Endava at US$49.98 per share, while the most bearish prices it at US$30.03. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Endava's past performance and to peers in the same industry. We would highlight that Endava's revenue growth is expected to slow, with the forecast 10% annualised growth rate until the end of 2025 being well below the historical 18% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 9.5% annually. So it's pretty clear that, while Endava's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.