UK£0.89: That's What Analysts Think Lamprell plc (LON:LAM) Is Worth After Its Latest Results

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

earnings-and-revenue-growth
LSE:LAM Earnings and Revenue Growth July 2nd 2021

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.