It's been a mediocre week for THG Plc (LON:THG) shareholders, with the stock dropping 19% to UK£0.43 in the week since its latest half-yearly results. Revenues were UK£1.1b, with THG reporting some 8.4% below analyst expectations. 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. 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 THG

After the latest results, the eleven analysts covering THG are now predicting revenues of UK£2.53b in 2022. If met, this would reflect a notable 10% improvement in sales compared to the last 12 months. Per-share losses are predicted to creep up to UK£0.13. Before this latest report, the consensus had been expecting revenues of UK£2.61b and UK£0.11 per share in losses. So it's pretty clear the analysts have mixed opinions on THG after this update; revenues were downgraded and per-share losses expected to increase.

The average price target fell 29% to UK£1.42, implicitly signalling that lower earnings per share are a leading indicator for THG's valuation. 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. There are some variant perceptions on THG, with the most bullish analyst valuing it at UK£3.70 and the most bearish at UK£0.45 per share. As you can see the range of estimates is wide, with the lowest valuation coming in at less than half the most bullish estimate, suggesting there are some strongly diverging views on how analysts think this business will perform. As a result it might not be a great idea to make decisions based on the consensus price target, which is after all just an average of this wide range of estimates.

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 THG'shistorical trends, as the 21% annualised revenue growth to the end of 2022 is roughly in line with the 21% annual revenue growth over the past year. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 13% per year. So it's pretty clear that THG is forecast to grow substantially faster than its industry.