EML Payments Limited (ASX:EML) Half-Year Results Just Came Out: Here's What Analysts Are Forecasting For This Year

Last week, you might have seen that EML Payments Limited (ASX:EML) released its interim result to the market. The early response was not positive, with shares down 4.7% to AU$0.91 in the past week. Revenues were AU$151m, and EML Payments came in a solid 11% ahead of expectations. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

See our latest analysis for EML Payments

Taking into account the latest results, the current consensus, from the five analysts covering EML Payments, is for revenues of AU$277.9m in 2024. This implies a perceptible 3.7% reduction in EML Payments' revenue over the past 12 months. Before this earnings report, the analysts had been forecasting revenues of AU$274.4m and earnings per share (EPS) of AU$0.059 in 2024. So we can see that while the consensus made no real change to its revenue estimates, it also no longer provides an earnings per share estimate. This suggests that revenues are what the market is focusing on after the latest results.

There's been no real change to the consensus price target of AU$1.07, with EML Payments seemingly executing 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. The most optimistic EML Payments analyst has a price target of AU$1.20 per share, while the most pessimistic values it at AU$0.90. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

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. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 7.3% by the end of 2024. This indicates a significant reduction from annual growth of 24% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue decline 7.1% annually for the foreseeable future.

The Bottom Line

The most important thing to take away is that the analysts reconfirmed their revenue estimates for next year, suggesting that the business is performing in line with expectations. They also made no major changes to their revenue forecasts for next year, and expected it to grow in line with the wider industry. The consensus price target held steady at AU$1.07, with the latest estimates not enough to have an impact on their price targets.

At least one of EML Payments' five analysts has provided estimates out to 2026, which can be seen for free on our platform here.

We don't want to rain on the parade too much, but we did also find 1 warning sign for EML Payments that you need to be mindful of.

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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.