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Ninety One Group (LON:N91) just released its latest full-year results and things are looking bullish. The company beat expectations with revenues of UK£625m arriving 5.3% ahead of forecasts. Statutory earnings per share (EPS) were UK£0.17, 6.1% ahead of estimates. The 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. 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 Ninety One Group
Taking into account the latest results, Ninety One Group's five analysts currently expect revenues in 2022 to be UK£634.8m, approximately in line with the last 12 months. Statutory earnings per share are predicted to accumulate 2.4% to UK£0.17. In the lead-up to this report, the analysts had been modelling revenues of UK£633.5m and earnings per share (EPS) of UK£0.17 in 2022. 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£2.59, showing that the business is executing well and in line with expectations. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Ninety One Group analyst has a price target of UK£2.66 per share, while the most pessimistic values it at UK£2.45. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.
Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that Ninety One Group's revenue growth will slow down substantially, with revenues to the end of 2022 expected to display 1.5% growth on an annualised basis. This is compared to a historical growth rate of 7.4% over the past three years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 2.6% per year. Factoring in the forecast slowdown in growth, it seems obvious that Ninety One Group is also expected to grow slower than other industry participants.