Yahoo Finance Jumbo Interactive Limited (ASX:JIN) Just Reported Interim Earnings: Have Analysts Changed Their Mind On The Stock?
It's been a good week for Jumbo Interactive Limited (ASX:JIN) shareholders, because the company has just released its latest interim results, and the shares gained 8.3% to AU$17.49. Jumbo Interactive reported in line with analyst predictions, delivering revenues of AU$74m and statutory earnings per share of AU$0.50, suggesting the business is executing well and in line with its plan. 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've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
View our latest analysis for Jumbo Interactive
Following the latest results, Jumbo Interactive's seven analysts are now forecasting revenues of AU$155.0m in 2024. This would be a decent 19% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to leap 23% to AU$0.68. In the lead-up to this report, the analysts had been modelling revenues of AU$146.5m and earnings per share (EPS) of AU$0.66 in 2024. It looks like there's been a modest increase in sentiment following the latest results, withthe analysts becoming a bit more optimistic in their predictions for both revenues and earnings.
Despite these upgrades,the analysts have not made any major changes to their price target of AU$16.32, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Jumbo Interactive analyst has a price target of AU$19.20 per share, while the most pessimistic values it at AU$12.90. 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.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's clear from the latest estimates that Jumbo Interactive's rate of growth is expected to accelerate meaningfully, with the forecast 42% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 17% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 6.8% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Jumbo Interactive to grow faster than the wider industry.
The Bottom Line
The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Jumbo Interactive following these results. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. 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.
With that in mind, we wouldn't be too quick to come to a conclusion on Jumbo Interactive. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Jumbo Interactive analysts - going out to 2026, and you can see them free on our platform here.
You can also see our analysis of Jumbo Interactive's Board and CEO remuneration and experience, and whether company insiders have been buying stock.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.
