Jumbo Interactive Limited (ASX:JIN) Analysts Are Pretty Bullish On The Stock After Recent Results

It's been a good week for Jumbo Interactive Limited (ASX:JIN) shareholders, because the company has just released its latest half-yearly results, and the shares gained 9.2% to AU$17.50. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Check out our latest analysis for Jumbo Interactive

After the latest results, the seven analysts covering Jumbo Interactive are now predicting revenues of AU$152.8m in 2024. If met, this would reflect a notable 17% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to bounce 27% to AU$0.70. Before this earnings report, the analysts had been forecasting 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.

With these upgrades, we're not surprised to see that the analysts have lifted their price target 5.2% to AU$16.62per share. 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$20.80 per share, while the most pessimistic values it at AU$13.10. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Jumbo Interactive's growth to accelerate, with the forecast 38% annualised growth to the end of 2024 ranking favourably alongside historical growth of 17% per annum 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 6.7% 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 biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Jumbo Interactive's earnings potential next year. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

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.

We also provide an overview of the Jumbo Interactive Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

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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.