Yahoo Finance Here's What Analysts Are Forecasting For Rightmove plc After Its Annual Results
Last week, you might have seen that Rightmove plc (LON:RMV) released its annual result to the market. The early response was not positive, with shares down 4.2% to UK£6.26 in the past week. It was a credible result overall, with revenues of UK£289m and statutory earnings per share of UK£0.19 both in line with analyst estimates, showing that Rightmove is executing in line with expectations. Earnings are an important time for investors, as they can track a company's performance, look at what top analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether analysts have changed their mind on Rightmove after the latest results.
View our latest analysis for Rightmove
Following the latest results, Rightmove's 16 analysts are now forecasting revenues of UK£312.0m in 2020. This would be a modest 7.8% improvement in sales compared to the last 12 months. Statutory earnings per share are expected to rise 8.7% to UK£0.21. Before this earnings report, analysts had been forecasting revenues of UK£312.8m and earnings per share (EPS) of UK£0.21 in 2020. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
Analysts reconfirmed their price target of UK£6.03, showing that the business is executing well and in line with expectations. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Rightmove at UK£8.45 per share, while the most bearish prices it at UK£4.55. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.
It can also be useful to step back and take a broader view of how analyst forecasts compare to Rightmove's performance in recent years. We would highlight that Rightmove's revenue growth is expected to slow, with forecast 7.8% increase next year well below the historical 11%p.a. growth over the last five years. Juxtapose this against the other companies in the market with analyst coverage, which are forecast to grow their revenues (in aggregate) 7.5% next year. Factoring in the forecast slowdown in growth, it looks like analysts are expecting Rightmove to grow at about the same rate as the wider market.
The Bottom Line
The most obvious conclusion from these results is that there's been no major change in the business' prospects in recent times, with analysts holding earnings per share steady, in line with previous estimates. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider market. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
Still, the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Rightmove going out to 2024, and you can see them free on our platform here..
We also provide an overview of the Rightmove Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.
