Trifast plc Just Missed Earnings; Here's What Analysts Are Forecasting Now

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It's been a pretty great week for Trifast plc (LON:TRI) shareholders, with its shares surging 12% to UK£0.77 in the week since its latest full-year results. Things were not great overall, with a surprise (statutory) loss of UK£0.033 per share on revenues of UK£234m, even though the analysts had been expecting a profit. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

View our latest analysis for Trifast

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LSE:TRI Earnings and Revenue Growth August 1st 2024

Taking into account the latest results, the current consensus from Trifast's four analysts is for revenues of UK£238.4m in 2025. This would reflect an okay 2.0% increase on its revenue over the past 12 months. Trifast is also expected to turn profitable, with statutory earnings of UK£0.031 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of UK£240.2m and earnings per share (EPS) of UK£0.043 in 2025. So there's definitely been a decline in sentiment after the latest results, noting the pretty serious reduction to new EPS forecasts.

The consensus price target held steady at UK£1.13, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Trifast analyst has a price target of UK£1.40 per share, while the most pessimistic values it at UK£1.00. 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.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that Trifast's revenue growth is expected to slow, with the forecast 2.0% annualised growth rate until the end of 2025 being well below the historical 4.9% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 4.9% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Trifast.