Yahoo Finance LondonMetric Property Plc Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year
LondonMetric Property Plc (LON:LMP) investors will be delighted, with the company turning in some strong numbers with its latest results. The company beat forecasts, with revenue of UK£178m, some 7.2% above estimates, and statutory earnings per share (EPS) coming in at UK£0.11, 108% ahead of 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
Check out our latest analysis for LondonMetric Property
Following the latest results, LondonMetric Property's six analysts are now forecasting revenues of UK£370.2m in 2025. This would be a substantial 108% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to surge 166% to UK£0.15. Yet prior to the latest earnings, the analysts had been anticipated revenues of UK£364.6m and earnings per share (EPS) of UK£0.17 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.
It might be a surprise to learn that the consensus price target was broadly unchanged at UK£2.23, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. 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 LondonMetric Property analyst has a price target of UK£2.50 per share, while the most pessimistic values it at UK£1.86. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting LondonMetric Property is an easy business to forecast or the the analysts are all using similar assumptions.
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 LondonMetric Property's rate of growth is expected to accelerate meaningfully, with the forecast 108% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 13% 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 0.9% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that LondonMetric Property is expected to grow much faster than its industry.
The Bottom Line
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for LondonMetric Property. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at UK£2.23, with the latest estimates not enough to have an impact on their price targets.
With that in mind, we wouldn't be too quick to come to a conclusion on LondonMetric Property. Long-term earnings power is much more important than next year's profits. We have forecasts for LondonMetric Property going out to 2027, and you can see them free on our platform here.
That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 3 warning signs with LondonMetric Property (at least 2 which are significant) , and understanding them should be part of your investment process.
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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.
