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Keller Group plc (LON:KLR) last week reported its latest full-year results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. Revenues were UK£3.0b, approximately in line with expectations, although statutory earnings per share (EPS) performed substantially better. EPS of UK£1.93 were also better than expected, beating analyst predictions by 12%. 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 Keller Group
After the latest results, the five analysts covering Keller Group are now predicting revenues of UK£3.06b in 2025. If met, this would reflect a credible 2.3% improvement in revenue compared to the last 12 months. Statutory earnings per share are expected to reduce 2.5% to UK£1.92 in the same period. Before this earnings report, the analysts had been forecasting revenues of UK£3.13b and earnings per share (EPS) of UK£1.77 in 2025. So it's pretty clear that while sentiment around revenues has declined following the latest results, the analysts are now more bullish on the company's earnings power.
There's been no real change to the average price target of UK£19.58, with the lower revenue and higher earnings forecasts not expected to meaningfully impact the company's valuation over a longer timeframe. 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 Keller Group analyst has a price target of UK£22.50 per share, while the most pessimistic values it at UK£18.00. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Keller Group is an easy business to forecast or the the analysts are all using similar assumptions.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Keller Group's past performance and to peers in the same industry. We would highlight that Keller Group's revenue growth is expected to slow, with the forecast 2.3% annualised growth rate until the end of 2025 being well below the historical 8.9% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 4.6% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Keller Group.