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Last week, you might have seen that TI Fluid Systems plc (LON:TIFS) released its full-year result to the market. The early response was not positive, with shares down 9.7% to UK£2.67 in the past week. The results look positive overall; while revenues of €2.8b were in line with analyst predictions, statutory losses were 5.9% smaller than expected, with TI Fluid Systems losing €0.49 per share. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
See our latest analysis for TI Fluid Systems
After the latest results, the six analysts covering TI Fluid Systems are now predicting revenues of €3.20b in 2021. If met, this would reflect a notable 14% improvement in sales compared to the last 12 months. TI Fluid Systems is also expected to turn profitable, with statutory earnings of €0.21 per share. In the lead-up to this report, the analysts had been modelling revenues of €3.24b and earnings per share (EPS) of €0.24 in 2021. So there's definitely been a decline in sentiment after the latest results, noting the substantial drop in new EPS forecasts.
The consensus price target held steady at €3.72, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic TI Fluid Systems analyst has a price target of €3.72 per share, while the most pessimistic values it at €2.61. This is a very narrow spread of estimates, implying either that TI Fluid Systems is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the TI Fluid Systems' past performance and to peers in the same industry. The analysts are definitely expecting TI Fluid Systems' growth to accelerate, with the forecast 14% annualised growth to the end of 2021 ranking favourably alongside historical growth of 1.0% per annum over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 13% per year. TI Fluid Systems is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.