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TheWorks.co.uk plc (LON:WRKS) shareholders are probably feeling a little disappointed, since its shares fell 8.6% to UK£0.29 in the week after its latest yearly results. Revenues were UK£280m, approximately in line with whatthe analysts expected, although statutory earnings per share (EPS) crushed expectations, coming in at UK£0.084, an impressive 133% ahead of estimates. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
See our latest analysis for TheWorks.co.uk
After the latest results, the twin analysts covering TheWorks.co.uk are now predicting revenues of UK£294.0m in 2024. If met, this would reflect an okay 5.0% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to grow 10% to UK£0.093. Before this earnings report, the analysts had been forecasting revenues of UK£293.5m and earnings per share (EPS) of UK£0.043 in 2024. There was no real change to the revenue estimates, but the analysts do seem more bullish on earnings, given the massive increase in earnings per share expectations following these results.
The consensus price target rose 12% to UK£0.63, suggesting that higher earnings estimates flow through to the stock's valuation as well.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We can infer from the latest estimates that forecasts expect a continuation of TheWorks.co.uk'shistorical trends, as the 5.0% annualised revenue growth to the end of 2024 is roughly in line with the 5.9% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 5.8% annually. So although TheWorks.co.uk is expected to maintain its revenue growth rate, it's only growing at about the rate of the wider industry.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around TheWorks.co.uk's earnings potential next year. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.