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Foxtons Group plc (LON:FOXT) last week reported its latest annual results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. It looks like a credible result overall - although revenues of UK£164m were what the analysts expected, Foxtons Group surprised by delivering a (statutory) profit of UK£0.045 per share, an impressive 23% above what was forecast. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
Check out our latest analysis for Foxtons Group
After the latest results, the six analysts covering Foxtons Group are now predicting revenues of UK£176.2m in 2025. If met, this would reflect a modest 7.5% improvement in revenue compared to the last 12 months. Per-share earnings are expected to increase 6.8% to UK£0.049. Before this earnings report, the analysts had been forecasting revenues of UK£176.5m and earnings per share (EPS) of UK£0.046 in 2025. So the consensus seems to have become somewhat more optimistic on Foxtons Group's earnings potential following these results.
The consensus price target was unchanged at UK£0.83, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. 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. The most optimistic Foxtons Group analyst has a price target of UK£1.03 per share, while the most pessimistic values it at UK£0.62. 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.
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 Foxtons Group's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 7.5% growth on an annualised basis. This is compared to a historical growth rate of 11% 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 3.1% annually. Even after the forecast slowdown in growth, it seems obvious that Foxtons Group is also expected to grow faster than the wider industry.