Shareholders in Lamprell plc (LON:LAM) had a terrible week, as shares crashed 29% to UK£0.46 in the week since its latest full-year results. Revenues were in line with expectations, at US$339m, while statutory losses ballooned to US$0.16 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

View our latest analysis for Lamprell

Taking into account the latest results, the consensus forecast from Lamprell's three analysts is for revenues of US$471.7m in 2021, which would reflect a huge 39% improvement in sales compared to the last 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 65% to US$0.054. Before this earnings announcement, the analysts had been modelling revenues of US$490.0m and losses of US$0.04 per share in 2021. So it's pretty clear the analysts have mixed opinions on Lamprell after this update; revenues were downgraded and per-share losses expected to increase.

The consensus price target fell 9.1% to UK£0.89, with the analysts clearly concerned about the company following the weaker revenue and earnings outlook. 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. Currently, the most bullish analyst values Lamprell at UK£1.01 per share, while the most bearish prices it at UK£0.75. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

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. One thing stands out from these estimates, which is that Lamprell is forecast to grow faster in the future than it has in the past, with revenues expected to display 39% annualised growth until the end of 2021. If achieved, this would be a much better result than the 31% annual decline over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 4.5% annually. Not only are Lamprell's revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts increased their loss per share estimates for next year. They also downgraded their revenue estimates, although industry data suggests that Lamprell's revenues are expected to grow faster than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

With that in mind, we wouldn't be too quick to come to a conclusion on Lamprell. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Lamprell going out to 2023, and you can see them free on our platform here..

You should always think about risks though. Case in point, we've spotted 1 warning sign for Lamprell you should be aware of.

This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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