Yahoo Finance Results: Castings P.L.C. Exceeded Expectations And The Consensus Has Updated Its Estimates
The full-year results for Castings P.L.C. (LON:CGS) were released last week, making it a good time to revisit its performance. Castings reported UK£224m in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of UK£0.38 beat expectations, being 5.6% higher than what the analysts expected. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
See our latest analysis for Castings
Taking into account the latest results, the current consensus, from the two analysts covering Castings, is for revenues of UK£181.7m in 2025. This implies a definite 19% reduction in Castings' revenue over the past 12 months. Statutory earnings per share are expected to nosedive 34% to UK£0.25 in the same period. In the lead-up to this report, the analysts had been modelling revenues of UK£215.7m and earnings per share (EPS) of UK£0.35 in 2025. It looks like sentiment has declined substantially in the aftermath of these results, with a substantial drop in revenue estimates and a large cut to earnings per share numbers as well.
It'll come as no surprise then, to learn that the analysts have cut their price target 18% to UK£4.50.
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 would highlight that revenue is expected to reverse, with a forecast 19% annualised decline to the end of 2025. That is a notable change from historical growth of 12% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 1.4% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Castings is expected to lag the wider industry.
The Bottom Line
The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Castings' future valuation.
With that in mind, we wouldn't be too quick to come to a conclusion on Castings. Long-term earnings power is much more important than next year's profits. We have analyst estimates for Castings going out as far as 2027, and you can see them free on our platform here.
And what about risks? Every company has them, and we've spotted 1 warning sign for Castings you should know about.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
